Australian ESG market sees renewed inflows into sustainable products after customer backlash and regulatory scrutiny. Wealth managers face pressure to embrace ESG to stay competitive. Regulatory expectations tighten with ASIC cracking down on greenwashing. ASIC reported 47 interventions between April 2023 and June 2024, including a $6.5m fine in March 2025.

Betashares reports impressive net inflows of A$21.6bn in H1 2025, double the previous year. Total assets under management reach A$280.5bn, a 9% increase. GlobalData finds 85.8% of Australian private wealth managers see strong demand for ESG investments. 55.3% expect HNW assets allocated to ESG to increase in the next year.

Private wealth managers have an opportunity as demand for sustainable investing grows. Clients seek credible ESG strategies and transparency. Token “green” funds are no longer enough; advisors must offer sophisticated ESG options. Focus on local market trends and regulations, not US political noise around ESG.

Read more at Yahoo Finance: Demand for ESG is on the rise again in Australia