Sustainability - 'Ethical' Investment
Whether you are a committed ethical investor, a sceptic or just don’t care – this stuff is here to stay – and it will increasingly affect markets and hence returns; let’s look at this subject a bit further:
What is Sustainability?
This is now the commonly used phrase to encompass socially responsible and Environment, Social and Governance Investment (ESG) investment. The word ‘sustainable’ is used as a catch all since over the long-term investments that are good for mankind are likely to benefit all.
Why do all investors need to be aware of sustainable investment?
Regulators around the World are looking closely at policing this area and drawing up rules to be enacted in 2024. This means that like it or not there will be a market effect on these types of holdings. Thus, even those who are not interested in this area need to consider the effects of sustainability driven by legislation.
Will sustainable investments out-perform conventional holdings?
We don’t know is the answer here but considering the foregoing paragraph and their likely market promotion they should not be ignored.
What are Our Clients Attitudes?
Just to help you with our perspective: when we are perfect, we will judge you; this means that you are safe from our judgement for the foreseeable future.
Broadly our clients fall into three groups.
Those who have no sustainable directives for us when investing.
Those who have some concerns and ask us to avoid certain areas or invest a certain amount in sustainable funds.
Those who are committed to promoting sustainable investment and ask us to work towards this for them.
We should not judge, do not class the first group as heartless or short-sighted – many clients in this group simply prefer to offer service or contributions that benefit society in their own preferred ways.
How do we deal with this?
By talking to you to find out your aims and ambitions. If we feel that we can service your needs properly we will put together a plan for approval and act for you – if not we will try to point you in the right direction.
How can I find out more about sustainability? We have put together a brief guide on this subject, follow this link as a starting point.