Divestment isn’t just a buzzword anymore. In 2025, it’s a force steering everyday Australians, super funds, and even major institutions away from industries that clash with their values. As new policies and economic pressures reshape the financial landscape, divestment is quickly evolving from a niche movement to a mainstream financial strategy. So, what does this mean for your money, and how can you make choices that align with both your ethics and your financial goals?
Why Divestment Is Surging in Australia
The divestment movement—selling off investments in industries like fossil fuels, tobacco, gambling, and weapons—has picked up serious steam in Australia over the past few years. What’s driving this shift in 2025?
- Policy Momentum: The Australian government’s 2025 Climate Finance Roadmap has set ambitious decarbonisation targets, pressuring superannuation funds and banks to reduce their exposure to high-emission sectors.
- Consumer Power: Australians are more informed and vocal, demanding transparency about where their money is invested. Platforms like Market Forces and Responsible Returns have made it easier to see which institutions are walking the talk.
- Financial Risk: With the global push for net zero by 2050 and heightened regulatory scrutiny, fossil fuel and “sin” stocks are increasingly seen as risky bets. This is prompting investors to reconsider the long-term stability of their portfolios.
How Major Players Are Responding
Divestment isn’t just for activists—it’s now a boardroom conversation. In 2025, Australia’s top super funds, banks, and universities have taken bold steps:
- UniSuper and HESTA: Both super funds announced complete divestment from thermal coal in early 2025, following member pressure and tightening ESG (Environmental, Social, Governance) regulations.
- Major Banks: NAB and ANZ have committed to phasing out lending to new oil and gas projects by 2030, aligning with the Australian Prudential Regulation Authority’s (APRA) latest climate risk guidelines.
- Universities: The University of Sydney pledged to divest all endowment funds from fossil fuels by the end of 2025, citing both ethical leadership and future-proofing against stranded assets.
These moves are not without controversy—critics argue about potential impacts on returns, but recent data shows many divested portfolios have performed comparably or even better than their traditional peers, especially as renewable energy and tech stocks surge.
Practical Steps for Australians Who Want to Divest
Thinking about aligning your own money with your values? Here’s how Australians can take action in 2025:
- Review Your Super: Superannuation is often your largest investment. Use your fund’s annual report or tools like Responsible Returns to check exposure to fossil fuels, gambling, or tobacco. Many funds now offer dedicated “sustainable” or “ethical” options.
- Switch Banks: Customer-owned banks and some digital banks have made strong divestment commitments. Compare their lending and investment policies—some provide detailed disclosures on their websites.
- Direct Investments: If you hold shares or ETFs, check the product disclosure statements for sector exposure. In 2025, the ASX now offers more ESG-rated ETFs, making it easier to build a divested portfolio.
- Ask Questions: Don’t hesitate to contact your financial adviser or fund manager to clarify their position on divestment. In 2025, transparency is an expectation, not a bonus.
Real-world example: After the 2025 bushfire season reignited climate concerns, thousands of Australians shifted their super to “fossil free” options, with Australian Ethical Super reporting record inflows in Q1 2025.
The Road Ahead: What Divestment Means for Your Future
Divestment isn’t just about exclusion—it’s about reallocating capital towards solutions. With Australia’s sustainable finance sector projected to reach $70 billion in assets by the end of 2025, the impact of individual and institutional divestment is only growing. This trend is also influencing corporate behaviour, as companies scramble to improve their ESG credentials to attract investment.
Whether you’re driven by ethics, risk management, or a desire to leave a lighter footprint, divestment gives your money a voice. And in 2025, that voice is louder than ever.
