Ethical Investing

As the nation’s attention continues to be directed to Westminster, our Government is under pressure from more than its Brexit negotiations. Protests in London and across the country by members of ‘Extinction Rebellion’ have attempted to highlight another issue: climate change. Concern about climate change and its implications is not just felt here in the UK, but worldwide, as activists and protesters across the globe try to get their message across.

When it comes to choosing where to invest, for some, the importance of ethics and social responsibility plays a large part in which firms and investment funds they choose for their portfolios. For those wanting to ensure their investments employ environmental, social and governance (ESG) screening, fund managers are responding; in 2018 just over 25% of assets under management were invested using a responsible investment approach1.

Ethical investment need not mean sacrificing potential returns; in the last 12 years the index of companies selected for their socially responsible investing (SRI) has delivered better returns than the market as a whole2.  SRI may also provide less exposure to political and legal risks. As Governments apply pressure to tackle issues such as climate change, increases in taxation and regulation of non-ethical practices makes operating in these areas less profitable for companies3. High profile environmental scandals can also hit companies and their investors hard; environmentally responsible investing can potentially avoid such risks.   

Beaumont Wealth can help when it comes to ethical investment. Our range of investments includes specifically designed ethical portfolios. These portfolios firstly exclude companies that operate in sectors such as tobacco, gambling and firearms for instance. The next step selects companies that have an ESG rating above our threshold. This provides us with a pool of investments to then select based on financial performance and risk. By selecting an ethical portfolio, our clients can be assured that their investments have been chosen responsibly. 

As individuals, we are becoming more aware of our impact on the world around us, our choice as to where we invest our money can also reflect a move towards becoming more responsible and ethical.

For more details on ethical investment and to book a free initial consultation with one of our independent advisers, contact us today on 01691 670524 or email us at [email protected] 

  1. Source – Investment Association Press Release 12 September 2019
  2. Source – MSCI World SRI Index Factsheet 30 September 2019  
  3. Source – Investors Chronicle online article “Is Ethical Investing Doomed?” 06 August 2019
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