Falmouth Packet Business Dec ’17 – Ethical investing

So what is ethically investing?

More and more institutions and individuals are choosing to invest in “ethical” investments. So what is ethical investing?  Quite simply ethical investing is the application of both positive and negative social and environmental criteria in the management of an investment/pension portfolio.

Sometimes referred to as sustainable, socially responsible or green, Individuals and organisations can favour an approach that meets positive or negative screening such as non-investment in tobacco or arms trade companies.

Since the early 1980’s this style of management has developed and grown to the multibillion industry that it is today through engagement and thematic investment. This analysis complements the traditional positive and negative screening which means investors not just avoiding investment in companies that are of concern because of what they do or how they do it but also identifying core sustainable investment themes and engaging directly with companies and policymakers to effect change for the better.

Growing interest in Socially Responsible Investments is why major initiatives such as the Carbon Disclosure project have attracted the support of investors of all types, including large institutions.

While many investors welcome the opportunity to invest ethically, they still expect good financial performance – and the evidence here is very encouraging. However financial performance might not be the only way to measure the success of an ethical or SRI investment strategy. Social and environmental impacts are an increasingly important part of the equation for many enlightened investors.

For more information on Ethical investing and how this style of investing could work for you, your business or institution please feel free to contact me, or an alternative Independent Financial Adviser.

This article does not provide individual financial advice and are the views of the columnist only. Vision Independent Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Sarah Williams of W.T Independent Financial Planning is an Appointed Representative of Vision Independent Financial Planning Ltd

Article December 2017