As public concern for the environment, including the impact of climate change, has reached its highest level, there is a growing realisation that investors have a significant role to play in addressing the environmental and social challenges the world is facing. The impact of recent documentaries and interviews by Sir David Attenborough and the acts of key young people such as Greta Thunberg are having an impact on more people and society has reached a tipping point as more investors than not are aiming to be more sustainable.
In many areas of our lives there is a trade-off between our personal ethics and the ability of society to match our personal requirements. Socially responsible investing has been deemed as niche and those that invest with social responsibility have been seen as sacrificing returns for the social conscious.
The front runners have been investing ethically for a long time and have not been seen to perform at rates less than the market average. This has been noted across all levels of investors and we believe that a tipping point has been reached across the generations and aiming to cause less harm to the world with our actions has resulted in a market that has matured so there is no longer a trade-off between performance and personal values.
When considering longevity in any market the results show an evolution from ethical to ESG (environmental, social, governance) and to SRI (socially responsible investing). Experience tells us that people find their level along this continuum are seeking advice on the best way for them to invest responsibly. As a result, this is an area where many more clients have been enquiring over more recent times.
Being independent, we engage with our investment managers to provide a range of solutions from portfolios that focus on ESG to those looking to make a more positive impact on the future. Investor’s requirements from investments that do no harm and are at the cutting edge of those technological and environmental advances to build a more sustainable world. We are able to provide reference to more sustainable development goals.
Being independent, we are engaging with the investment management community to source competitive solutions for our clients to address the question of how investors can support wider sustainability agendas whilst maintaining a focus on financial performance.
There are no certainties in investing, but we can start to answer the question of whether these social challenges can be addressed while not detracting from investment performance, the answer is simple … they can.
For further information on how we can help you build and protect your wealth, please contact us.