The Only Way Is Ethics

Since we opened our doors we have helped clients build investment strategies that align with their risk profile, timescale and values

The way in which people live and engage with political, climate and corporate issues has changed dramatically in recent years

One of the ways clients like to engage is by controlling & considering where they invest their money

Why?

Apart from the main narratives of pollution, waste, tobacco and corporate greed, there is a widening array of reasons to consider incorporating ESG (environmental, social & governance) themes into a portfolio.

A growing consideration among investors is the balance between corporate profit and growth versus societal needs.  Paying a living wage to make a fairer society and creating a more environmentally conscious business plan as examples

Avoid

Avoid techniques use negative screening to help clients create a portfolio focussing companies whose products, services or practices align with their personal values and beliefs, thus avoiding those with a vision or products are at odds with them

Main considerations tend to be Human Rights, Environmental Impact, Animal Welfare, Arms, Fossil Fuels, Alcohol, Tobacco and Gambling

Engage

Engaging is a vastly wider architecture.

By investing the shares of a company, fund managers might have voting rights and can have some influence over the position a company takes

Positive and Sustainable themes can be wide ranging, driven by issues facing the planet;

• Infrastructure – improving the environmental impact on towns & cities

• Products & Services – energy efficiency, changing business practices & technologies, managing waste and recycling

• Renewable & Alternative energies

• Health & Wellbeing – access to healthcare, mental wellbeing, helping developing countries improve care

• Social issues – equality, safe & affordable housing, education

• Food & Farming

• Transport

• Finance and Employment

Where do you start?

Discussing your moral beliefs with us is simple, we utilise a Fact Find designed for clients wishing to adopt an Ethical / Sustainable portfolio

We employ screening databases supported by experienced and independent analysts, that has the capability to screen OUT, or indeed, IN, specific issues and criteria

This is then risk matched to your profile and discussed with you in terms of any nuances or considerations you need to make

 

Is the Investment Risk Greater

Generally speaking, the overall portfolio of options available diminishes when you either avoid or specifically target certain industries or ideals

We employ systems that ‘risk-profile’ investment portfolios. Taking into account the asset allocation (cash, equities, commercial property etc), together with financial strength, historic consistency of perfromance and so on, to create a ‘risk score’providing a reference point to make a decision

Cashflow is an important factor in creating financial strength. According to one leading investment platform money held in ethical funds rose from £4.5bn in 2008 to £16.7bn in 2018

 

 

Emerging Issues

Waste & Plastics

The use of plastics and the effect the dumping of waste is having on the planet and seas is acute. Producing around 3.5 million tonnes of solid waste each day, the World is going to need solutions

Smart cities

City living now exceeds rural living, meaning that for the first time in it’s history, the world now has more people moving to cities for economic and social reasons

The challenges going forward will be making them liveable and sustainable. Utilities, transport, housing and connectivityneed to be harnessed to make them fit for purpose.  The challenge will continue, as history dictates that countries seeking to reach middle income status do so by population shifting to city-dwelling

 

My most recent case

Met with a prospective client who leads a Vegan lifestyle. Wanting to save for retirement he wanted to invest in a way that supports his Veganism, as much as possible

We have been able to recommend an investment portfolio that avoids investment in companies that derives business turnover from;

• Intensive farming

• Own or operate an Abattoir or poultry slaughterhouse

• Own or operate a Fish Farm

• Are producers or retailers of meat, poultry, fish, dairy products and slaughterhouse by-products

 

Saving for your future can also mean saving for everybody else’s