Introduction

In a world dealing with climate emergencies, rising inequality, and corporate scandal fatigue, more young Australians are looking at investing as a way to do more than just grow wealth. They want to grow change and that’s where sustainable investing comes in.

Whether you’re a complete beginner or someone who’s toyed with the idea of investing ethically, this guide is here to help. No jargon, no stock-picking hype, just a plain English explainer on how to start sustainable investing in 2025, with real tools and real relevance.

What is Sustainable Investing?

Sustainable investing means choosing investments that take into account environmental, social, and governance (ESG) factors. It’s about asking: what kind of businesses am I funding with my money?

Think renewable energy instead of fossil fuels. Think companies that support diversity instead of exploitative labour. Think technology that’s solving global issues, not creating more of them.

But sustainability isn’t just a buzzword. In 2025, it’s a market driver. According to Bloomberg, ESG assets globally are on track to exceed US$50 trillion by 2025. In Australia, it’s now mainstream, not niche.

Why It Matters in 2025

Let’s look at what’s happening around us:

Climate events are intensifying. Australia’s recent floods and heatwaves have prompted urgent calls for green transitions.
Gen Z and Millennials are projected to control over 70% of disposable income by 2030, and they care about values.
Ethical superannuation funds are outperforming traditional peers.

This isn’t about feeling good. It’s about being ahead of the curve.

Sustainable vs Ethical vs Impact Investing

These terms often get jumbled. Here’s a quick guide:

Sustainable Investing: Looks at how companies care for the environment, people, and good management (ESG), as well as their profits. It’s often used in investment funds like ETFs, and it’s not always about personal values. Sometimes it’s just about reducing risk and finding stronger companies.
Ethical Investing: is when you choose investments that match your personal morals or beliefs. The main goal is to avoid putting money into industries or companies you see as harmful, such as tobacco, gambling, weapons, or fossil fuels. Instead, the focus is on supporting businesses that do less harm and act responsibly.
Impact Investing: Impact investing means putting money into businesses or projects that do measurable good for society or the environment while also earning a financial return.

Sustainability is the floor, not the ceiling. Use it to build portfolios, not define them.

How to Start Sustainable Investing (Even With $100)

Step 1: Pick a Platform

Look for investing platforms that support fractional investing and include ethical or sustainability filters. Choose one that aligns with your values and provides transparency on where your money is going.

Step 2: Set Your Budget

You don’t need thousands to begin. Start with whatever amount fits your budget each month. Even $100 is plenty. What matters is consistency, not the size of your investment.

Step 3: Diversify

Avoid putting all your money in a single stock. Instead, use ETFs or building a mixed portfolio so that it spreads your risk.

Here are some beginner friendly ETF’s to include:

ETHI - Global ethical leaders

FAIR - Australian ethical fund

Step 4: Track Performance and Impact

Good platforms let you see not only your financial returns but also your real world impact, such as:

CO₂ emissions avoided
Jobs supported
Diversity and inclusion metrics

Sustainable Investment Themes for 2025

Investing in themes allows you to focus your money on the areas driving the biggest change in society and the economy, while still aiming for solid returns. Here are some suitable themes for your portfolio:

Clean energy: investing in solar, wind, and hydrogen to replace fossil fuels.

Circular economy: supporting recycling, re-use, and turning waste into energy.

Health equity: making healthcare more affordable and accessible for everyone.

Financial inclusion: giving more people access to banking, credit, and financial tools.

First Nations enterprise: backing Indigenous-led businesses to grow and strengthen communities.

Follow the impact, not the hype. Companies like Canadian Solar and Lemonade are examples of businesses that are not just growing fast, but also contributing meaningfully to global solutions.

Here is a guide on relevant sustainable investment themes

What to Watch Out For

Greenwashing

Greenwashing https://www.accc.gov.au/business/advertising-and-promotions/environmental-and-sustainability-claims is when a company or organization makes itself look more environmentally friendly than it really is. Some funds label themselves sustainable but hold shares in mining or big oil companies. Always check the actual holdings.

Short-Term Thinking

Sustainable investments may not deliver huge gains overnight. They often take longer to show results but that patience pays off with stronger resilience and ethical impact over time.

Risk Still Exists

Even ethical investments carry risks. It’s important to research them carefully, just as you would with any other financial decision.

FAQs

Is sustainable investing profitable? Yes. Multiple reports, including from RIAA and Morningstar, show sustainable portfolios match or outperform traditional ones.

Can I invest through my super? Absolutely. Most super funds offer an ethical or sustainable option. Just ask.

Do I need a financial advisor? Not to start. But if your portfolio grows or you want personal advice, it’s worth considering.

Will I sacrifice returns for values?
Not necessarily. Research shows sustainable funds often perform as well as or better than traditional ones over time.

How inaam Helps

inaam makes sustainable investing simple and transparent. Instead of digging through complex reports, you get clear insights into which investments truly align with your values. We help you cut through greenwashing, focus on long-term opportunities, and understand the risks so you can invest with confidence. Best of all, inaam lets you track your real-world impact showing how your money contributes to cleaner energy, fairer work, and a more sustainable future.

Final Thought

Sustainable investing isn’t a trend. It’s a transition. And like any transition, it starts with a first step.

With the right tools, a curious mindset, and platforms that do the heavy lifting, you can grow your wealth without compromising your values.

If your money has power, make sure it’s building the kind of world you actually want to live in.

The Beginners Guide to Sustainable Investing (2025 edition).