Looking for the best ESG funds and ETFs in Australia? We don’t rank them. Below are ESG ETFs, ethical managed funds and impact funds, filterable by category, objective and investor type, with fees, performance and the offer document where the issuer has published them.
Use the filters to narrow the listings, open the ones that fit your goals and judge each fund on its own numbers. Everything on this page is general information only, not personal advice, so consider your own circumstances and read the offer document before you invest.
▪ ESG investing weighs environmental, social and governance factors alongside financial analysis when choosing investments.
▪ Responsible investment in Australia reached A$1.6 trillion, or 41% of total managed funds, in 2023, according to the Responsible Investment Association Australasia (RIAA).
▪ Global sustainable funds recorded US$84 billion of net outflows in 2025, the first calendar year of outflows since tracking began in 2018, yet assets still topped US$3.9 trillion (Morningstar).
▪ ASIC has won three Federal Court greenwashing penalties totalling A$34.7 million against Mercer, Vanguard and Active Super, so labels deserve scrutiny.
▪ You can invest through ESG ETFs, managed funds, impact funds, managed accounts or direct shares, each with different costs, liquidity and control.
▪ The right ESG fund depends on the job it does in your portfolio. Compare fees, performance against a relevant benchmark, holdings and the ESG approach in the offer document.
▪ ESG Funds and ETFs in Australia: Compare ESG Investments
▪ What Are the Best ESG Funds and ETFs in Australia?
▪ How Do I Compare ESG Funds on InvestmentMarkets?
▪ What Is the Difference Between ESG, Ethical, Sustainable and Impact Investing?
▪ How Big Is Responsible Investing in Australia?
▪ Do ESG Funds Perform as Well as Other Funds?
▪ Which ESG Investment Themes Can I Invest In?
▪ What Are the Ways to Invest in ESG in Australia?
▪ Why Do Investors Choose ESG Investments?
▪ What Are the Risks of ESG Investing?
▪ What Does Mandatory Climate Reporting Mean for ESG Investors?
▪ Summary
▪ Further Reading From InvestmentMarkets
There is no single best ESG fund. The right one depends on what you want it to do: track a screened share index cheaply, back an active manager’s judgement, target a theme such as clean energy, or fund measurable social and environmental outcomes. The listings on this page let you sort those options by category, objective and investor type, then compare them on the numbers the issuer has published.
Start with the outcome you want, then match it to the type of fund. The table below maps common goals to the InvestmentMarkets listing pages where you can see the funds listed.
If You Want To… | Consider | Browse |
Hold a low-cost, screened share portfolio | Index-based ESG ETFs that exclude sectors such as fossil fuels, tobacco or weapons | |
Add global sustainable shares | ESG-screened or climate-aware global share funds and ETFs | |
Invest sustainably in Australian shares | Ethical or ESG-tilted Australian share funds and ETFs | |
Back an active manager’s ESG process | Actively managed ESG funds and active ETFs | |
Target a theme such as clean energy | Thematic funds and ETFs focused on climate solutions | |
Hold one diversified ethical portfolio | Multi-asset ESG funds that blend shares and bonds | |
Own the shares directly | Responsible separately managed accounts | |
Fund real-world assets such as renewables | Unlisted impact and environmental funds, often wholesale only |
Among the listings you will find index ETFs such as the Betashares Global Sustainability Leaders ETF (ETHI) and the Vanguard Ethically Conscious Australian Shares ETF (VETH), active ETFs such as the Janus Henderson Global Sustainable Equity Active ETF (FUTR) and the Perpetual ESG Australian Share Active ETF (GIVE), diversified options such as the iShares Balanced ESG ETF (IBAL), and unlisted funds such as the Pengana WHEB Sustainable Impact Fund and the EnviroInvest Investment Fund. These are examples of the range, not recommendations.
Filter the listings by category, objective (such as growth or income) and investor type (retail or wholesale). Where the issuer has published them, listings show fees, performance figures and the offer document, along with the minimum investment, liquidity and structure. Open a listing to read the detail or enquire directly with the issuer.
Five checks to run on any ESG fund before you invest.
These are the numbers and facts worth comparing, and where to find them.
What To Compare | Why It Matters | Where To Find It |
Fees and costs | ESG funds range from low-cost index ETFs to higher-fee active and impact funds. Fees compound over time. | Listing, where the issuer has published them, and the offer document |
Performance against a benchmark | Compare with a relevant index, ideally both an ESG and a non-ESG one, over several years. | Listing, where the issuer has published it, and the issuer’s fund updates |
ESG approach | Integration, exclusions, best-in-class, thematic or impact. Each delivers something different. | Offer document and the issuer’s responsible investment policy |
Exclusions and thresholds | ‘Excludes fossil fuels’ can mean 0% or up to a revenue threshold. Check the detail. | Offer document and index methodology |
Holdings | Shows whether the portfolio matches the label. | Issuer’s published holdings list |
Independent evidence | Third-party certification, stewardship and impact reports add credibility. | Issuer website and RIAA |
Liquidity and minimum | Listed ETFs trade daily on the ASX. Unlisted funds may have higher minimums and redemption limits. | Listing and offer document |
For a deeper dive on using ratings, read How to Use ESG Scores to Your Advantage.
InvestmentMarkets is building Australia’s central hub for fund and ETF investing. Here is how this page works.
▪ List ESG ETFs, managed funds and other investments so you can browse them in one place.
▪ Show issuer figures such as fees and performance, and link to the offer document, where the issuer has published them.
▪ Let you filter by category, objective and investor type.
▪ Connect you directly with issuers so you can ask questions before you invest.
▪ Publish independent ESG articles and investor education to help you ask better questions.
▪ Rank funds or tell you which one to buy.
▪ Provide personal financial advice. Information here is general only.
▪ Verify or certify any fund’s ESG claims. Check the offer document and the issuer’s own reporting.
ESG investing integrates environmental, social and governance factors into investment decisions. It goes beyond traditional financial analysis by considering a company’s impact on the environment, how it treats people and the quality of its corporate governance. The aim is to generate sustainable long-term returns while managing risks that conventional analysis can miss, and in some strategies, to create positive outcomes for society and the planet.
The three pillars of ESG investing and the issues each one covers.
▪ Environmental: evaluates a company’s impact on the environment, including its carbon footprint, resource use, waste management and efforts to reduce pollution. Companies that prioritise sustainability, energy efficiency and responsible resource management are favoured in ESG portfolios.
▪ Social: focuses on how a company manages relationships with its employees, customers, suppliers and communities. ESG investors look for diversity, labour rights, safe working conditions and community engagement.
▪ Governance: assesses a company’s internal policies and practices, including board structure, executive remuneration and shareholder rights. Strong governance tends to mean greater transparency and accountability.
Read more in Why Ethical Management Teams Are the Best Kind.
The terms are often used interchangeably, but they describe different approaches.
ESG integration treats ESG issues as financial risks.
Ethical investing applies values-based exclusions.
Sustainable investing tilts toward companies with stronger ESG performance or solutions.
Impact investing seeks measurable social or environmental outcomes alongside a financial return.
As our article ESG Doesn’t Mean Impact explains, an ESG label alone does not guarantee real-world change.
Responsible investment approaches range from managing financial risk to targeting real-world outcomes
.
Strategy | How It Works | Example Among the Listings |
ESG Integration | Incorporates ESG factors into traditional financial analysis, so a company’s prospects are assessed alongside its ESG performance. | Many active global equity funds and Australian equity funds |
Exclusionary Screening | Removes industries or companies based on criteria such as tobacco, weapons, gambling or fossil fuels. | |
Positive or Best-in-Class | Tilts toward companies with stronger ESG characteristics within each sector. | |
Thematic Investing | Aligns a portfolio with ESG themes such as renewable energy, clean technology or water. | |
Impact Investing | Targets investments that generate measurable positive social or environmental impact alongside financial returns. | Pengana WHEB Sustainable Impact Fund, EnviroInvest Investment Fund |
Want to know whether impact investing avoids ESG’s growing pains? Read Can Impact Investing Sidestep the Challenges of Its Big Brother, ESG?
Responsible investment is now mainstream.
The RIAA Responsible Investment Benchmark Report Australia 2024 found responsible investment assets reached A$1.6 trillion in 2023, or 41% of A$3.9 trillion in total managed funds, up from A$1.3 trillion and 36% in 2022. RIAA also reported that greenwashing was the top barrier to responsible investment, cited by 52% of respondents.
Source: RIAA Benchmark Reports 2023 and 2024. Data covers calendar years 2022 and 2023.
Investor demand is a big part of the story. RIAA’s From Values to Riches 2024 survey of 2,003 Australians in January 2024 found 88% expect their investments to be responsible and ethical, 79% would be more likely to invest in a product independently verified as responsible, and 78% are wary of greenwashing.
Source: RIAA, From Values to Riches 2024.
For a closer look at the trends behind these numbers, read Investing in Line with Your Values Without Sacrificing Returns.
Sometimes better, sometimes worse. Performance depends far more on the sectors a fund holds or avoids than on the ESG label. Sustainable strategies are generally underweight energy, defence and other cyclical sectors, which have performed strongly recently, while some clean energy holdings have been hurt by higher interest rates. That helps explain why leading global ESG indices have slightly lagged the broader market over longer periods, as shown in The ESG Reset: Sustainability Trends Worth Knowing About.
Flows have followed performance. Morningstar reports global sustainable funds suffered US$84 billion of net outflows in calendar 2025, after US$38 billion of inflows in 2024. Outflows slowed to an estimated US$27 billion in the fourth quarter, and global sustainable fund assets rose about 4% to more than US$3.9 trillion by the end of 2025.
Source: Morningstar, ESG Funds 2025 Closes with Continued Outflows. Q3 2025 figure is approximate.
The long-term ESG case is financial: companies with stronger sustainability characteristics may face lower regulatory, litigation and stranded-asset risks. Whether that translates into outperformance is never guaranteed. Compare each fund’s returns against a relevant benchmark over several years, and remember that past performance is not a reliable indicator of future performance.
See also One Step Back, Two Steps Forward for ESG Investing and What the DEI Backlash Means for ESG Investing.
The opportunity set is far broader than a handful of clean energy stocks. The International Energy Agency’s World Energy Investment 2025 estimated global energy investment of US$3.3 trillion in 2025, with US$2.2 trillion going to clean energy, twice the amount directed to fossil fuels. Solar was the largest single item at US$450 billion, battery storage reached around US$66 billion and grids about US$400 billion.
Source: IEA, World Energy Investment 2025. Figures are IEA estimates for 2025.
Companies and projects in wind, solar, hydro and geothermal power, such as panel manufacturers, wind farm operators and renewable infrastructure funds. Australia’s 2035 target to cut emissions 62% to 70% below 2005 levels implies A$475 billion to A$630 billion of investment over the coming decade, as outlined in Australia’s Environmental Investment Window.
Transmission networks, batteries and the electrification of transport and industry. These assets can offer infrastructure-like cash flows, available through infrastructure funds and infrastructure ETFs. Read Profiting From the Energy Transition.
Companies promoting energy efficiency, waste reduction and emissions reduction, including electric vehicles, efficient appliances and advanced recycling. Many sit within thematic ETFs and thematic global equity funds.
Investments that reduce environmental impact, promote responsible land use and improve food security, such as regenerative farming, sustainable fisheries and plant-based food.
Explore farmland and farming and agriculture listings.
Water technology firms, utilities and wastewater treatment businesses that support efficient water use and climate resilience.
Carbon and biodiversity projects under schemes such as Australia’s ACCU Scheme and Nature Repair Market. These demand careful assessment of integrity, permanence and liquidity.
The Water Is Slowly Warming explores the systemic risks behind them, and What Australia’s New Climate Goal Means for Investors covers the asset allocation angle.
Investing in ESG in Australia can be done through several vehicles, depending on your goals, budget, tax position and how much control you want.
ESG ETFs usually track an index of companies that meet set ESG criteria, giving low-cost diversification in a single ASX trade. Options span Australian ETFs, Global ETFs, Emerging Markets ETFs, Thematic ETFs and Active ETFs.
New to ETFs? Read Meet the ETF Market Maker and 6 ETF Secrets the Super-Rich Use to Their Advantage.
Actively managed ESG managed funds hold shares and/or bonds selected by professional managers using their own ESG process. Examples include Global Sustainable Equity and Australian Sustainable Equity funds, alongside ESG-aware bond funds.
Impact funds target specific, measurable outcomes such as cutting carbon emissions, improving access to clean water or advancing gender equality. Many are unlisted and some are open to wholesale investors only, often investing in infrastructure, private equity or other alternatives.
Managed accounts let you own the underlying shares directly, so you can see every holding and sometimes add your own exclusions. Responsible portfolios such as the Ord Minnett Responsible Equities Portfolio sit here.
LICs and LITs are another listed route to a manager’s strategy.
You can build your own ESG portfolio by buying individual shares that match your values. This gives full control but requires research and diversification discipline.
Read Is Stock Investing Dead? Why Most Stock Pickers Can’t Beat ETFs before you decide.
Vehicle | How You Access It | Typical Minimum | Liquidity | ESG Control |
Buy on the ASX via a broker | Low (one unit) | Daily on the ASX | Set by index rules | |
Apply to the issuer or via a platform | Varies by fund | Usually daily to monthly | Set by the manager | |
Impact Funds | Apply to the issuer, often wholesale only | Often higher | Can be limited | Outcome targets set by the manager |
Via an adviser or platform | Varies by provider | Underlying shares are listed | Higher, some allow personal exclusions | |
Direct Shares | Buy on the ASX via a broker | Low | Daily on the ASX | Full |
▪ Ethical alignment: invest in line with your values and avoid industries you object to. See Investing Ethically.
▪ Long-term value: ESG investing aims to identify companies well placed to navigate environmental and social challenges, offering potential long-term value.
▪ Risk management: companies with strong ESG practices may be better prepared for crises, regulatory change and environmental shocks, potentially reducing long-term risk.
▪ Access to capital: companies with strong ESG credentials can find it easier and cheaper to raise capital, which may support growth.
▪ Influence: through voting and engagement, investors can push companies to improve their practices.
▪ Lack of standardised metrics: ESG data and ratings vary across providers, so two funds with similar labels can hold very different portfolios.
▪ Greenwashing: some products overstate their ESG credentials. See the next section for how to check.
▪ Potential underperformance: excluding sectors such as energy or defence means returns can diverge from the broader market for long periods.
▪ Concentration: thematic funds can be concentrated in a small number of sectors that are sensitive to interest rates and policy. Equal-Weight ETFs: A Simple Fix for Market Concentration explains the wider issue.
▪ Liquidity: unlisted impact and alternative funds may restrict withdrawals. How to Stress Test Your Portfolio can help you plan for this.
ASIC defines greenwashing as misrepresenting the extent to which a product or strategy is environmentally friendly, sustainable or ethical. It has published guidance, How to Avoid Greenwashing When Offering or Promoting Sustainability-Related Products, and has backed it with court action.
Sources: Mercer, Vanguard, Active Super.
Case | Penalty | Date | What Went Wrong |
A$11.3 million | August 2024 | Misleading claims about the sustainable nature of ‘Sustainable Plus’ options | |
A$12.9 million | 25 September 2024 | False or misleading ESG screening claims about an ‘ethically conscious’ bond fund | |
A$10.5 million | 18 March 2025 | Claimed to exclude gambling, tobacco, oil tar sands and coal mining while holding exposures | |
Proceedings commenced | October 2025 | ASIC alleges governance failures and misleading conduct about an ESG fund |
Five questions to ask any ESG fund:
▪ What exactly does the offer document say the fund excludes, and are there revenue thresholds?
▪ Do the published holdings match the label?
▪ Is the ESG process applied to the whole portfolio or only part of it?
▪ Is there independent certification or impact reporting?
▪ How does the fund vote and engage with the companies it owns?
Australia’s mandatory climate reporting regime should improve the quality of ESG data. From 1 January 2025, the largest companies and financial institutions began preparing annual sustainability reports containing climate-related financial disclosures under the Corporations Act and AASB S2, according to ASIC. Smaller cohorts follow for financial years starting on or after 1 July 2026 and 1 July 2027, as covered in The ESG Reset.
Group | First Reporting Periods | What It Means for Investors |
Group 1 (largest entities) | Financial years starting on or after 1 January 2025 | First wave of standardised climate data from major ASX companies |
Group 2 | Financial years starting on or after 1 July 2026 | Broader coverage across mid-sized entities |
Group 3 | Financial years starting on or after 1 July 2027 | Data extends further down the market |
Better disclosure gives analysts, index providers and fund managers more reliable raw material, and gives you more to check when a fund makes climate claims. Climate is currently the only mandatory component, though other sustainability topics may follow.
ESG investing has moved from niche to mainstream in Australia, and it has become more demanding. The easy phase of rising inflows is over, greenwashing enforcement is real, and new climate reporting is lifting the quality of data. That makes the basics more important: know what job you want a fund to do, read the offer document, check the holdings and compare fees and performance against a fair benchmark.
Use the listings on this page to compare the ESG ETFs, managed funds and impact funds available, then judge each one on its numbers.
ESG investing lets you align your financial goals with your values. It can also help manage risks linked to environmental and social issues, because companies with strong ESG practices may be more resilient over the long term.
Look for funds that track an ESG index or apply a stated ESG process, review ESG ratings and reports, and consider managers who specialise in ESG strategies. On InvestmentMarkets you can browse ESG funds and filter by category, objective and investor type, then read the offer document where the issuer has published it.
Returns vary widely. Some research links strong ESG performance with better long-term outcomes, but ESG indices have also lagged the broader market at times, partly because they underweight energy and defence. Compare each fund’s returns against a relevant benchmark over several years. Past performance is not a reliable indicator of future performance.
Yes. As investors prioritise ESG factors, companies have an incentive to improve their practices to attract and retain capital. Shareholder voting and engagement by fund managers can also drive change in areas such as climate targets and board diversity.
ESG ratings assess a company’s performance on environmental, social and governance factors, such as carbon emissions, labour practices, board diversity and transparency. Providers use different methods and weightings, so the same company can receive very different scores. Treat ratings as a starting point.
They can be, if the fund suits your goals, risk tolerance and time frame. An ESG label does not make a fund good or bad on its own. Judge it on fees, performance against a benchmark, diversification and how credibly it delivers its ESG promise.
ESG investing assesses environmental, social and governance factors, often as financial risks. Ethical investing applies values-based rules, usually by excluding industries such as tobacco, gambling or weapons. Many funds combine both.
Not always. Some exclude all fossil fuel producers, some apply revenue thresholds, and others keep energy companies to engage with them on transition plans. Check the exclusions and thresholds in the offer document.
Yes. Many ESG ETFs and managed funds can be held in a self-managed super fund, subject to your fund’s investment strategy.
Browse SMSF investments and seek advice on your circumstances.
ESG ETFs can be bought on the ASX for the price of a single unit plus brokerage. Unlisted managed funds often have minimums in the thousands of dollars, and wholesale funds usually require higher amounts and wholesale investor status.
The Responsible Investment Association Australasia runs a certification programme for responsible investment products. Certification indicates a product has met RIAA’s standards for disclosure and process. RIAA’s survey found 79% of Australians would be more likely to invest in a product independently verified as responsible.
No. ESG investing considers ESG factors, often to manage risk. Impact investing intends to create measurable positive social or environmental outcomes alongside returns and reports on them. Read ESG Doesn’t Mean Impact.
▪ Australia’s Environmental Investment Window: From Capital Need to Investor Opportunity
▪ The ESG Reset: Sustainability Trends Worth Knowing About
▪ The Water Is Slowly Warming: Systemic Risks Investors Are Underpricing
▪ Investing in Line with Your Values Without Sacrificing Returns
▪ Asset Allocation Secrets: What Australia’s New Climate Goal Means for Investors
▪ Can Impact Investing Sidestep the Challenges of Its Big Brother, ESG?
▪ What the DEI Backlash Means for ESG Investing in 2025
▪ One Step Back, Two Steps Forward for ESG Investing
▪ Profiting From the Energy Transition
▪ How to Use ESG Scores to Your Advantage
▪ Avoiding the Common Mistakes in Multi-Asset Portfolio Investing
▪ How to Stress Test Your Portfolio Before the Next Market Shock
Browse all ESG articles or the latest InvestmentMarkets articles.
Disclaimer: This article is prepared by Simon Turner. It is for educational purposes only. While all reasonable care has been taken by the author in the preparation of this information, the author and InvestmentMarkets (Aust) Pty. Ltd. as publisher take no responsibility for any actions taken based on information contained herein or for any errors or omissions within it. Interested parties should seek independent professional advice prior to acting on any information presented. Please note past performance is not a reliable indicator of future performance.
The Perpetual ESG Australian Share Fund is an actively managed fund, targeting long-term capital growth and income through investment predominantly in quality Australian shares that meet Perpetual’s ESG and values-based criteria.
The Fund’s performance objective is to provide investment returns which exceed conventional global equity indices, after management fees, over the long term.
GMTL provides exposure to global companies which produce critical metals for clean energy infrastructure and technologies, including lithium, copper, nickel and cobalt.
AEBD is designed to serve as a core fixed income allocation for investors seeking a true-to-label ethical fixed income solution. It aims to track the performance of an index (before fees and expenses) that provides exposure to a diversified portfolio of high-quality Australian corporate and government bonds. The bonds are screened to exclude issuers (other than sovereign bond issuers) with material exposure to fossil fuels or engaged in activities considered inconsistent with responsible investment considerations.
The Russell Investments Australian Responsible Investment ETF (the 'Fund') seeks to track the Russell Australia ESG High Dividend Index ('the Index'), which is weighted towards companies that demonstrate positive environmental, social and governance (ESG) characteristics after negatively screening for companies that have significant involvement in a range of activities deemed inconsistent with widely recognised responsible investment considerations. The Fund invests in Australian shares and trusts listed on the Australian Securities Exchange (ASX), with the aim of providing investors with exposure to an ESG enhanced, responsible investment portfolio.
The Fund aims to provide investors with the performance of the various indices of the Underlying Funds in which the Fund invests, in proportion to a ‘Balanced’ long term Strategic Asset Allocation (SAA), before fees and expenses, of approximately 50% equities and 50% fixed income exposure.
The Fund is a long only, actively managed, global equity fund. The Fund seeks to provide investors with exposure to a diversified global portfolio of companies, whose products and services are aligned to the development of a sustainable global economy.
The Fund invests principally in listed (or soon to be listed) international equities, will typically have 45 to 75 holdings and can invest in developed and emerging markets.
DGGF aims to provide exposure to a cost-effective, multi-asset class portfolio, for investors whose priority is investing in a way that aligns with their values. DGGF offers the potential for growth over the long term, and targets an allocation of 70% growth assets (Australian and international shares), 30% defensive assets (Australian and international bonds).
The objective of the Fund is to outperform the benchmark over the long term after fees and expenses, by investing in a diversified portfolio of mainly smaller and mid-cap companies
Vanguard Ethically Conscious Australian Shares ETF seeks to track the return of the FTSE Australia 300 Choice Index before taking into account fees, expenses and tax.
The Pengana WHEB Sustainable Impact Fund invests in companies with activities providing solutions to sustainability challenges.
The Morphic Ethical Equities Fund Limited (MEC) seeks to provide investors a way to grow their wealth and feel confident they do so without investing in businesses that harm the environment, people, and society.
The SPDR® S&P®/ASX 200 ESG ETF seeks to closely match, before fees and expenses, the returns of the S&P/ASX 200 ESG Index.
DZZF aims to provide exposure to a cost-effective, multi-asset class portfolio, for investors whose priority is investing in a way that aligns with their values. DZZF offers the potential for high growth over the long term, and targets an allocation of 90% growth assets (Australian and international shares), 10% defensive assets (Australian and international bonds).
