Socially Responsible Investing
In recent years we have seen a shift from investors that want to invest in companies that reflect their values and have a positive impact in various areas, but also deliver desired rates of return.
Having obtained my Responsible Investment Specialist designation, I work with our clients to help create a portfolio that takes into consideration the following ESG components.
These areas focus on: Environmental issues such as climate change, water scarcity, renewable energy and pollution; Social issues such as supply chain management, labour standards, human rights, diversity, health and safety; and Governance issues such as executive pay, bribery and corruption, whistle blower protection, political contributions, and corporate governance.
Responsible Investing funds can use a number of different screening factors to help them identify companies based on superior management practices that reduce risk and enhance returns while having a positive impact on society.
The 5 main screens are:
ESG Integration: integrates environmental, social and governance factors within the investment decision process.
Negative Exclusion: use negative screens as part of the investment process to avoid certain companies and sectors deemed unethical (such as tobacco, gambling).
Positive Inclusion: Focus on Companies that make a positive contribution to social and environmental challenges, for example renewal energy.
Thematic: Targets specific ESG issues by investing in solutions that address them (such as improving gender diversity, lowering hunger rates).
Impact: Aim to achieve certain measurable positive outcomes, such as human rights conditions.
We have a number of ESG funds that can meet the specific options you want to see in your portfolio.