We understand that our investors are increasingly seeking investments that are not only financially rewarding, but also ethical, effecting positive change within 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 at the end of last year. Such investments are now a mainstay of large institutional portfolios, not only because of their broader societal and environmental benefits, but also because they frequently outperform more orthodox investment products.
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 creating.
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 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 renewable energy and green technologies. We personally ensure that all our investments adhere to our strict ethical criteria.