What the Ethical Advisers’ Co-op’s 2025 Annual Report Tells Us
The Ethical Advisers’ Co-op’s 2025 Annual Report offers a snapshot of how ethical advisers in Australia are shaping capital markets, lifting industry standards and helping investors align their money with the future they want to see. Here are our five key takeaways from the report.
Bur first, for those unfamiliar, the Ethical Advisers’ Co-operative is a member-owned network of independent financial advisers across Australia and Aotearoa New Zealand. Established in 2013, it exists to raise the standard of ethical and responsible investment advice. Members collaborate on research, share due diligence, develop policy submissions, engage with fund managers, and coordinate shareholder advocacy. And fun fact, our very own Co-Founder Justin Medcalf also co-founded the Co-op!
1. $3.25 billion invested with purpose and growing
The Co-op’s members now collectively advise more than $3.25 billion in ethically managed funds, supporting over 3,400 clients. Now, billions of dollars are directed toward companies with stronger environmental, social and governance standards, sending a signal to boards, executives and fund managers that sustainability performance is financially material.
2. Greenwashing is being challenged head-on
A consistent theme throughout the report is the Co-op’s active approach to identifying and challenging greenwashing. Through its Leaf Ratings, committee-led research, and direct engagement with fund managers, the Co-op assesses whether products marketed as ethical genuinely align with their claims.
This matters because ethical labels alone are not enough. Some funds apply light exclusions while still holding companies with significant fossil fuel exposure or controversial practices.
3. Ethical engagement is delivering measurable outcomes
The report highlights extensive shareholder engagement and advocacy, covering climate risk, fossil fuel exposure, biodiversity, deforestation, labour standards, human rights, and corporate governance. One successful example cited in the report was a shareholder activism caimpaign coordinated by SIX and World Animal Protection regarding cruel wildlife entertainment experiences offered through Webjet’s partnership with Klook Following this engagement, Webjet announced it would develop an animal welfare policy in collaboration with World Animal Protection.
Several other resolutions followed a similar pattern, achieving significant shareholder support and, in some cases, prompting companies to withdraw proposals, amend policies, or strengthen commitments ahead of annual general meetings.
5. Ethical advice is shaping industry standards
Now in its twelfth year, Ethical Investment Week 2025 reached communities across Australia and Aotearoa New Zealand through events, webinars, film screenings, and adviser-led conversations. The focus on growing generational wealth through ethical investing resonated strongly. Investors are increasingly asking whether their money can support financial security, climate resilience, and the world their children and grandchildren will inherit.
We also took part in this week by hosting a national webinar dedicated to helping Australians uncover where their money is really invested and understand the practical steps to redirect wealth towards solutions aligned with their values.
Education initiatives like these help demystify ethical investing, strengthen financial literacy, and build confidence for investors who want their capital working toward both long-term returns and long-term impact.
References
Ethical Advisers’ Co-operative (2025). 2025 Annual Report: Growing wealth and enriching future generations. https://www.ethicaladviserscoop.org
