This week, we talk to Dr Patrice Newell, co-founder of Kwala, an investing app that allows users to support worthwhile, world-improving organisations and movements whilst also improving their personal finances. Known for her contributions in advancing the use of alternative energy and her work in the agriculture and the environment sectors, Dr Newell is also passionate about helping Australians gain better access to wealth while also providing the needed direction towards supporting the right companies who are creating a positive impact and not just for their profitability.
ISB: What inspired you to help develop the app Kwala?
PN: Kwala was created by a team and we all had different drivers. After market research, formal surveys, focus groups, prototypes and dozens of early versions of the app, we concluded there needs to be a simpler, more affordable way to invest.
ISB: How does Kwala determine which companies it encourages users to invest in?
PN: It starts with our investment team and advisors screening for positive and negative impacts socially and environmentally. All companies must positively contribute to one or more of the 17 UNSDGs (United Nations Sustainable Development Goals). We review the fund monthly as companies can change.
ISB: Why is ethical investing important in today’s world?
PN: We learned in high school economics that public companies are built for their shareholders, and first and foremost for profit. The entire industrialised world was based on exploiting what I call ‘the commonwealth of nature’ for private profit – with corporations encouraged to plunder and pollute. Consequently (and inevitably) we’re in a climate emergency with GHGs (greenhouse gasses) running amok. Today’s task – for business, investors and governments – is to bring GHGs down and meet agreed targets. Business can no longer just be about profit. Yes, profit matters, but it must be aligned with the UNSDGs.
ISB: What has been the most challenging aspect for you in developing and marketing this app and how did you overcome it?
PN: Starting any business is not for the light-hearted. The biggest crisis? When Russia invaded Ukraine. Here we were in safe Australia whereas some of our tech team are Ukrainians. As Putin’s army advanced, we lost contact with them. What of their communities? Had they survived? Amazingly we were able to make contact and work continued. They donate some of their Kwala income to the war effort.
ISB: How receptive has the public been to the idea of ethical investing thus far?
PN: There’s real enthusiasm to apply these ideas to business. Customers often express strong dislike of certain categories or companies – say gambling or armaments. Then there are companies that excite us at Kwala such as solar-powered cars, cancer treatments and cybersecurity. When you bring an ethical lens to business it opens up a whole new conversation, and our customers want to take part.
ISB: What is your vision for Kwala in the next couple of years?
PN: Quite simply for people to feel excited by regularly investing some of their money in companies that are building a better world. To make truly healthy profits through acquiring the #kwalahabit.
