Australian Ethical is one of two retail superannuation funds and one of 12 funds overall that have been ranked as a comprehensive responsible investor by the Responsible Investment Association Australasia (RIAA).
Australian Ethical managing director, Phil Vernon, said there was increasing demand among working Australians for super products that aligned with their values.
"This benchmarking report provides objective information for people looking to choose a fund, and also makes it clear to the superannuation industry what best practice looks like," Vernon said.
"It is pleasing to see 12 funds ranked as comprehensive responsible investors, though this survey calls out that many super funds have a long way to go.
"With over $1.7 trillion invested into superannuation in Australia, super funds are in a powerful position to support positive social and environmental outcomes, in a way that aligns with the values and expectations of their members."
The benchmark represented the ability to demonstrate its responsible approach across the five pillars of commitment, governance, implementation, measurement, and transparency.
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.