Ethical investing
Becoming financially secure is a dream for many of us. But it’s only worthwhile if we have a healthy and sustainable world in which to enjoy it. We believe that to achieve social wellbeing and economic prosperity we need to protect the planet and shape a world that is fit for future generations. Money needs to become a force for good.
The world’s leading investors are increasingly focused on environmental, social and governance (ESG) factors when they weigh up which companies to invest in. ESG factors are a set of measures to determine how a company behaves and manages its impact on people and the planet.
At the same time, consumers are increasingly considering environmental and social factors in their decision-making processes. Companies seen to ‘give something back’ win more customers and, in turn, improve their bottom line. All this suggests the global economy is creating a more investor-friendly landscape for socially and environmentally conscious companies.
Added value of advice for the ethically minded investor
Whilst considering ESG principles when investing has become more popular, challenges remain for individual investors looking to incorporate these into their own investment strategy.
For a start, companies have been known to exaggerate their ESG credentials to appeal to investors, more commonly known as ‘greenwashing’. Furthermore, the process for disclosing ESG practice is not yet subject to the same reporting standards and external auditing as financial accounts. This can make it challenging for a fund manager to form a clear picture of a company, but also raises the question of the subjective nature of ESG integration in investment decisions. The good news is that you can now choose from a wide range of green, ethical and socially responsible investments that have a positive impact on the world around us. This means that the money you invest can be used to benefit society, as well as yourself.
Does investing ethically mean less returns?
Short answer, not necessarily.
If you’d like to know more about how you can align your moral views with your investment choices, we can offer you the financial advice you need.
For more information please click here.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
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If you would like to speak to us about a particular issue or wish to find out more about the services we offer, please get in touch.
