We understand that investors are increasingly seeking opportunities that are not only financially rewarding, but also ethical, effecting positive change in our communities and our environment.
Ethical investments are also known variously as ‘green’, ‘socially responsible’, ‘sustainable’ or ‘responsible’ investments, and they are no longer considered a niche or low-performing area – in fact, this market is growing at a staggering rate, with investments in ethical funds totalling £16bn in the UK alone by the end of last year. Such investments are now a mainstay of large institutional portfolios, not only because of their broader positive societal and environmental benefits, but because they frequently outperform more orthodox investment products. Generation, a sustainable investment group set up fourteen years ago by Al Gore and Goldman Sachs alumnus David Blood, is one of the most successful equity funds of its vintage, seeing net annualised returns in the low teens and significantly outstripping its mainstream competitors.
Historically, these ethical investment opportunities were only available to institutional investors, but individual investors are now playing a crucial role in the global shift towards more sustainable economies. There are two different approaches you can take to invest ethically: negative screening and positive screening. Negative screening means that you simply avoid investing in companies that do not comply with certain social or environmental criteria – for example, companies that make their money from tobacco, arms or coal. Positive screening means that you actively seek out companies and investment opportunities that are making a direct contribution to improving society and the environment – for example, companies that generate clean energy through solar power or waste-to-energy, or those involved in building socially responsible housing. We focus on these types of companies, so you know exactly where your money is going and what kind of specific environmental and social benefits it is bringing about.
The world’s population is projected to grow to 8.6 billion by mid-2030, 9.8 billion by mid-2050 and 11.2 billion by 2100. More people mean greater strain on sanitation, food production, waste management, power distribution and water supply – which means major development, investment and innovation in these areas will be increasingly crucial. Investors who put sustainability at the heart of their investment strategy now will see the rewards in the short term and position themselves to enjoy an upwards trajectory that is likely to continue for the foreseeable future.
We proactively search for investments that make a positive contribution to the environment and society, which is why our primary focus is in the green sector, and specifically green technologies. We personally ensure that all our investments adhere to strict ethical criteria, so that you know exactly where your money is going.
To find out more about our ethical and green investment opportunities, please enquire below today and one of our relationship managers will provide you with further information about our available opportunities.
Please note this is simply a guide to help you understand ethical investments and does not constitute financial advice. Please be aware that with investment your capital is at risk and returns are not guaranteed. These investments are not covered by the FSCS and security measures are not a guarantee of repayment. This investment is not readily realisable, and you should be prepared to hold it for the full investment term. The past performance is not a guarantee of future performance. You can read more about the general risks of investment on our website and should refer to the offering document for risks specific to this investment. With IFISA investments tax rules apply and are dependent on your individual circumstances. Please click here to view our full disclaimer.