An online trading platform which uses environmental, social and governance data to help retail investors screen for stocks based on sustainability factors is set launch in the coming months.
The H2 Ventures backed start-up, Goodments, founded by former ANZ financial adviser Tom Culver and his wife Emily Taylor of advertising firm Leo Burnett, was admitted to accelerator class last year and has attracted seed funding.
Culver says the platform will specifically target millennials and self-managed superannuation fund (SMSF) owners whose investment decisions are driven by environmental, social and ethical values.
"This year millennials became the largest segment of the workforce and the generation with the greatest spending power, but current investment options are largely inaccessible to them," Culver said.
"Today investing is complex, intimidating and importantly, based on solely financial data, which is a big problem for the sustainably-conscious who want invest in line with their values.
"We're making it easier for anyone to put their money where their heart is."
Culver also notes that it's a "win-win" as "investing in sustainable business is a better long-term investment performing up to three times better than polluting counterparts according to the Clean 200 (a ranking of the largest publicly listed companies by their total clean energy revenues)."
In a survey released by Morgan Stanley's Institute for Sustainable Investing, researchers found about 84% of millennials were interested in sustainable investing, and nearly twice as likely to invest in companies or funds that aim to use environmental, social or governance (ESG) practices to create a value differentiator.
"Demographic trends signal that millennial investors are likely to drive demand for sustainable investing well into the future. Asset managers creating investment products for individual investors cannot ignore these trends," the report noted.
The platform is currently operating in a closed-beta environment, based on data from global provider of ESG and corporate governance ratings Sustainalytics, and will move to a live version in July.
The start-up will also be launching a crowd funded campaign to raise awareness before going into another capital raise.