Navigating the future of sustainable finance

The world of sustainable finance is evolving at lightning speed, with new policies, green labels, and taxonomies emerging all the time. 

To stay ahead, MA Financial Group through its asset management division has teamed up with experts from the UTS Institute for Sustainable Futures (ISF) and the University of New South Wales (UNSW) Centre for Social Impact to dive into the latest trends impacting their MA Sustainable Future Fund.

What is the MA Sustainable Future Fund?

Launched in 2022 by MA Financial’s MA Growth Ventures team, the MA Sustainable Future Fund (the Fund) fuels growth-stage businesses which support a more sustainable future planet and society and whose products and services are aligned to the United Nation’s Sustainable Development Goals (UNSDGs).

To date the Fund has made 13 investments managing over $160m, and donated 10% of its performance fees to further support UNSDGs, specifically those targeting alleviating global poverty and hunger.

Research in action

Before the Fund was launched, MA Growth Ventures enlisted ISF and the UTS Business School to review the investment process, focusing on best practice for sustainability aspects. 

Two years later, ISF and UNSW are still collaborating with MA Growth Ventures, recently conducting a review to summarise key contextual developments relevant to the Fund.

“ISF welcomed the opportunity to work again with MA Financial, who have shown sectoral leadership in establishing the MA Sustainable Future Fund,” says ISF's Alison Atherton. 

Their latest confidential report highlights several key areas of progress in the sustainable finance landscape, offering fresh insights for the Fund. It covers:

• Developments in sustainable finance at a global and national level, including the Australian Sustainable Finance Roadmap, climate-related disclosures, social impact reporting, transition planning, sustainable finance taxonomies, and sustainable investment product labelling.
• Updates on global and local responsible investment markets and trends.
• Progress on the SDGs and the post-2030 agenda.

Global trends in sustainable finance

Global trends show a move towards harmonising disclosure frameworks, mandatory non-financial reporting, cracking down on greenwashing and the rollout of national green stimulus packages (including the A$22.7 billion Future Made in Australia).

There's also a growing recognition of the skills gap in sustainable finance and the potential uses of AI. 

The global responsible and impact investing market continues to grow, with the responsible investment market in Australia valued at A$1.6 trillion in 2023.

Progress on blended finance models, and early-stage technology companies offering climate solutions present opportunities for future investment. 

The future of sustainable finance

Why does this matter? Staying informed helps MA Financial keep abreast of a dynamic environment, to maximise the positive impact of the MA Sustainable Future Fund’s investments for people and planet. 

This comes as a time where the world is “severely off track” to achieve the 2030 SDG goals, with renewed emphasis on poverty eradication and digital inclusion. Alongside this, current global policies and action put us on a 2.7˚C trajectory by 2100.

This creates both challenges and opportunities for responsible investors like the MA Sustainable Future Fund, who must stay informed to align their strategies and mitigate risks. 

Awareness of recent developments also helps MA Financial avoid greenwashing—misleading consumers about their products' impact. 

“The landscape for responsible investors is rapidly evolving, and it’s critical for fund managers to stay up to date with the issues affecting their clients and investee companies. The insights provided in this report will help the Fund to continue to achieve its sustainability objectives,” says Alex Mount, MA Financial.

“Investor preparedness is a crucial part of a just transition. We need valid data derived through frameworks that can guide investors and companies toward those assets and activities that have positive impacts on communities and the environment” says co-author Professor Danielle Logue of UNSW Centre for Social Impact.

In a rapidly evolving landscape, the MA Sustainable Future Fund stands out by staying ahead of trends. With expert collaborations and continuous research, the Fund is well-positioned to lead in sustainable investment, driving impactful change while navigating the challenges and opportunities of the future.