Ethical Investment Matters

By the traditional dictionary definition, ethical investment is the practice of investing in companies whose business is not considered harmful to society or the environment.

Indeed, the earliest ethical investment options were targeted on a negative strategy where companies involved in tobacco, gambling, armaments and adult entertainment were excluded.  This was developed further with many funds screening out companies with connections to countries with oppressive regimes or low standards of human rights.  Others would avoid exposure to businesses connected with deforestation or involvement in animal testing (for cosmetic purposes); companies who don’t give due regard to their environmental impact or green issues.

Ethical, Sustainable Responsible Investing (SRI)

Recent years have seen this sector develop with more emphasis on investments having a positive impact on the world.  This includes the concept of Impact Investing which balances a return with a goal of achieving societal benefit.  A Sustainable and Responsible Investing (SRI) theme targets companies which look to protect the environment which could include exposure to renewable energy solutions.

Ethical Investing is a way in which investors can make a change.  It is not for everyone and is simply another choice that you can make with your investments in helping to address issues you want to have an impact on, as well as provide long-term returns.

Environmental, Social and Governance (ESG)

Our Ethical Investment portfolios are managed taking into account Environmental, Social and Governance (ESG) standards.  Environmental criteria consider how a company performs as a steward of nature.  Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates.  Governance deals with a company’s leadership, executive pay, audits, internal controls and shareholder rights.

Pension Ethical Investments

Ethical Investments are available to a wide range of tax wrappers including ISAs and Pensions.  Pension pots are typically the most significant single asset people have and many are unaware that these can be managed ethically.

MM Wealth has headquarters in Girton, Cambridge with offices in Northampton and London.  We look after clients in Cambridgeshire and across Norfolk, Suffolk, Hertfordshire, Essex, Northants, Leicestershire and Oxfordshire as well as London and the home counties.  We are happy to hear from you, wherever you are located.

If you would like to have your investments managed as an ethical portfolio or would simply like to find out more about Ethical Investment Matters, please contact us.