Sustainable investing 

Sustainable investing refers to specific investment approaches that aim to generate long-term financial returns while advancing sustainable solutions and outcomes1. It is the practice of making capital allocation decisions based on socially responsible and ethical strategies to ensure that portfolio companies maintain a high standard of sustainability principles. Sustainable investing considers environmental, social, and governance (ESG) risks, as well as assessing opportunities and progress using ESG data and fundamental insights to inform the allocation of capital.

Sustainable investing can use different methodologies and may be referred to as:

• Environmental, social, and governance (ESG) investing
• Ethical investing
• Impact investing
• Socially responsible investing (SRI)
• Values-based investing
• Conscious investing
• Green Investing

Investors are increasingly putting their money into sustainable investments to help them meet their financial objectives. Environmental, social, and governmental issues can impact share prices.

Factoring these into your investments could help increase the resilience of your investments and potentially deliver long-term capital growth. 

However, it’s important to note that there’s no guarantee that sustainable investments will produce returns similar to those that don’t consider these factors. The value of any type of investment can fall as well as rise, and you may not get back what you invest. All investments should be seen as a medium to long-term commitment, meaning you should be prepared to invest for at least 5 years.

Please note that sustainable investing is a broad topic with various approaches. It’s important to understand how a sustainable investment is measured and whether it aligns with your objectives and financial goals before making any investment decisions.

If you want to make a difference, you can consider investing sustainably. Sustainable responsible investment is a way of investing that supports activities that have a positive impact on people and the planet, while also generating financial returns for the investors. You can choose from different ways of investing sustainably, such as ESG integration, active ownership, thematic investing, impact investing or exclusions. You can also learn more about sustainable responsible investment from some of the resources I have provided in my previous message. I hope this helps you to make a difference with your money contact us. 😊