ESG (environmental, social & governance) Ethical Investing

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What is ESG, or ethical, Investing?

Like many financial ideas, investing ‘ethically’ can quickly become overly complicated by industry language. It is not always well understood – you may want your money to do good, or at least do no harm, but it is not always clear how to get started. When we talk about ethical investing, what we really mean is putting your money into investments that are responsible and sustainable. Ethical investing originally meant using ‘sin screens’ to weed out potential investments in industries clients wanted to avoid. This is what is known as ‘negative screening’, preventing investment in industries such as alcohol, tobacco, gambling or armaments and enabling funds to be selected which exclude industries investors would prefer to stay clear of. Today, however, there are ways to invest positively and proactively.

ESG investing can take a number of forms, including:

  • Investing in companies with strong ESG practices
  • Avoiding companies with poor ESG practices
  • Engaging with companies to encourage improvements in their ESG practices

ENVIRONMENTAL FACTORS

How does an organisation approach climate change, energy and water usage, resource management, waste disposal, the ecological impact of their products and their carbon footprint?

SOCIAL FACTORS

Is a company attuned to social diversity, human rights, consumer protection, and does it work to promote a healthier and higher quality of life for staff and stakeholders? Does the business behave in a responsible way and expect the same of their suppliers?

GOVERNANCE FACTORS

How does a company build and review its management structure? How does it approach employee and investor relations?
Are there sufficient levels of transparency, honesty and integrity at board level, and is this ethos shared across the company?

How we can help? Ethical investment advice in Swindon and beyond

As an independent financial adviser, I often work with clients who are interested in ESG (Environmental, Social, and Governance) investing.

A financial adviser can provide a number of services to help clients with ESG investing, including:

  1. Understanding Your Goals and Values

A financial adviser can help you to identify your goals and values, and how they relate to ESG investing. This can help to ensure that your investments align with your personal beliefs and priorities.

  1. Researching ESG Investments

A financial adviser can conduct research on companies and investment products that align with your ESG goals. This can help to identify opportunities for investment that are aligned with your values. We can include or exclude certain sectors that are important to you.

  1. Portfolio Construction

A financial adviser can help you to construct an investment portfolio that reflects your ESG goals and priorities. This may involve selecting specific ESG investments, or constructing a portfolio that has a certain level of exposure to ESG factors.

  1. Monitoring and Reporting

A financial adviser can monitor your ESG investments and provide regular reporting on their performance. This can help you to stay informed about the impact of your investments and make informed decisions about future investments.

In conclusion, ESG investing is an approach to investing that considers the impact of a company's environmental and social practices, as well as its governance structure. A financial adviser can help you to identify your goals and values, research ESG investments, construct an investment portfolio, and monitor and report on your investments. If you are interested in ESG investing, it's important to seek the advice of an experienced financial adviser who can help you make informed decisions. Book an appointment with an experienced ethical investment financial adviser at our head office in Swindon or an adviser locally.

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