Socially responsible investing grew at almost twice the rate of mainstream investments in Asia Pacific in the 12 months ending in June, data from the Responsible Investment Association Australasia (RIAA) shows.

Total funds under management invested in responsible investments was up 43% in the year ending June 2007, to AUD19.39 billion from AUD13.52 billion.

"The growth and performance of responsible investment this year has once again been outstanding. But of equal importance are the market signals which are driving investors to take environmental, social, ethical and governance issues into account,” Louise O'Halloran, director at RIAA, said. “It is about reducing risk, increasing returns, and it's also about meeting the expectations of society and the expression of personal values."

RIAA said factors influencing the growth included: strong sharemarket returns, new investor injections and continued growth in the level of superannuation assets.

In New Zealand, responsible investment assets were estimated to grow tremendously, to NZD15 billion, up from the 2006 figure of NZD37.2 million. The growth was credited to new investments in the New Zealand Superannuation Fund and the approval of a responsible investment policy by the ASB Community Trust.