Ethical & Sustainable Investing
Investing in this way regularly involves active engagement as the fund manager encourages the companies that they invest in to adopt or improve social, governance and environmental practices and be conscious of their impact on the world.
Whilst negative screening has been the foundation for most ethical based investments, this additional level of positive screening that considers Environmental, social and Governance factors, is less commonly known or adopted. Considerations are given to how an organisation approaches climate change, is it attuned to social diversity and human rights, and does it build and review its management structure in a transparent, honest manner. By blending both positive and negative screening, you can be assured that your investment solution meets your Ethical & Sustainable requirements.
There are three main types of ethical fund:
Positive screening – aims to invest in companies with a commitment to responsible business practices, or those who offer products and services that have a positive impact on the environment.
Negative screening - avoiding companies that do not meet the fund’s ethical standards. Industries most commonly excluded include alcohol, tobacco, gambling, pornography, animal testing for cosmetic purposes, genetic engineering, intensive farming, arms/military engagement and nuclear power.
Alternative - Other funds will consider companies that specialise in renewable energy and other technologies that can help to build a better future for our environment; or support charities and other socially responsible institutions.
We can recommend portfolios that are tailored to the level of risk that we agree is right for your circumstances. But it is important to remember that when investing ethically the same risks and principles apply; diversification (and good advice) can be the keys to reducing risk.
If you would like to know more about our Ethical & sustainable investment solutions, please do not estate to contact us.