Slot machine giant Aristocrat Leisure, known for its popular gaming machines, is set to host a unique event in Sydney dedicated to environmental, social, and governance (ESG) practices. The company has invited its largest investors, including top superannuation funds, to participate in the event, which aims to address concerns regarding the social impacts of gambling investments.
Australia, known for its high gambling rates, has seen its citizens lose approximately $25 billion per year to gambling activities. As a result, superannuation funds, which manage the retirement savings of millions of workers, are facing pressure to evaluate their investments in the gambling industry. With changing societal attitudes and increased awareness of the financial and social effects of gambling harm, funds are considering how to align their investments with ESG principles.
One such fund, NGS Super, has expressed a desire to exclude gambling stocks from its $14 billion portfolio. However, fund managers understand the need for a thorough evaluation process to ensure that investment decisions are financially justified for their members.
The Australian government has also taken steps to address the social harms caused by gambling. Proposed legislation aims to implement measures such as betting caps, reduced opening hours for venues, and stricter regulations on electronic gaming machines. A recent parliamentary inquiry has made recommendations for further actions, including banning online gambling advertisements and establishing nationwide regulations.
While superannuation funds, including AustralianSuper and HESTA, have engaged with companies like Aristocrat on ESG issues, there are currently no plans for divestment. Instead, funds offer responsible investment options that allow members to direct their savings towards industries that align with their values.
However, some Australians are unaware of where their retirement savings are invested due to limited disclosure practices. This lack of transparency has led to concerns among individuals who have experienced the negative impacts of gambling firsthand.
As societal attitudes and regulatory environments evolve, superannuation funds need to be proactive in aligning their portfolios with community expectations. The focus on ESG issues within the gambling industry reflects a broader trend of investors demanding more accountability and responsible practices from companies.
FAQ
- What is ESG?
- How much do Australians lose to gambling each year?
- What measures are being proposed to tackle social harms caused by gambling?
- Are superannuation funds planning to divest from gambling stocks?
ESG stands for Environmental, Social, and Governance. It refers to a set of criteria used to assess the sustainability and ethical impact of an investment.
Australians lose approximately $25 billion per year to gambling, which is the highest per capita loss globally.
Proposed measures include betting caps, reduced opening hours for venues, stricter regulations on electronic gaming machines, banning online gambling advertisements, and establishing national regulations.
While there are no current plans for divestment, superannuation funds are focusing on responsible investment options that allow members to exclude industries like gambling from their portfolios.