In our everyday life we are pushed to reduce our waste, recycle, reuse as much as we can. Many of us are switching to plastic free options. We can walk or cycle instead of driving. We can buy electric cars, we can install solar panels on our houses. These are all great in helping to reduce our negative impact on the planet. But what about investing?
In a world constantly striving to improve itself, sometimes we are approached by clients who wish to invest solely in ethical investments.
ESG (Environmental, Social and Governance) criteria can be used by socially-conscious investors and shareholders to screen investments and assess a company’s impact on the world. They affect how your company will gather and retain funding from investment funds who have a ‘socially responsible’ investment strategy.
We can of course offer greener investments. One such investment is in Wind Energy. We are all trying to reduce our impact on the environment. Investing in wind energy not only helps to clean up the environment, but it also offers quite an attractive return on your capital!
Interestingly enough, after I had finished writing my first draft of this blog post, I came across an article which states that by spring 2021, firms will under regulation, be obliged to disclose strategic policy and business decisions that may affect their ESG rating. This will allow investors to see how businesses have integrated sustainability risks and considered adverse sustainability impacts in the entity as a whole and in individual investment porftolios.
Could this see traditional asset managers transform into responsible investors? Let us know what you think.
If you are interested in discussing these types of investments, please get in touch.