How responsible is your investment portfolio?

Author: Nicola Peak

Chartered Financial Planner & Chartered Wealth Manager

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We all make an impact on the world, and when it comes to investing, we have a choice. Over the last decade there has been a noticeable shift in our individual attitudes towards environmental protection, social responsibility, and ethical accountability.

Thinking in the corporate world is also changing, driven by both governments and international bodies such as the United Nations, and the B Corp network.

What is Ethical Investing?

Traditionally, ethical portfolios would look to exclude certain areas of the market, referred to as the “sin stocks”, such as Alcohol, tobacco, gambling, pornography, extraction of fossil fuels and animal testing.
This is known as negative screening.

What is impact investing?

Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return and is becoming a popular form of investing.

Impact investments can be made in both emerging and developed markets and target a range of returns, depending on investors’ strategic goals.

The growing impact investment market provides capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, water supply, and affordable and accessible basic services including housing, healthcare, and education.

Impact investing – a key component of ethical investing

Impact investing is becoming a key part of ethical investing, allowing investors to help make a change with their investments. It’s not for everyone and is simply another choice that you can make with your investments.

At MM Wealth we incorporate impact investing as part of our ethical investment strategies. Our financial planners have a wealth of experience in this area and have been providing ethical investment solutions for clients since 2013.

For an initial chat about your requirements, please speak to Nicola Peak on 01223 233331 or email nicola@mmwealth.co.uk

Disclaimer
Opinions constitute our judgement as of this date and are subject to change without warning. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

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