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Improve Your Carbon Footprint With Sustainable Investing

As a company, we believe that sustainable investing is something we should all be interested in learning more about and consider when it comes to investing our money.

Environmental Social and Governance (ESG) investing involves considering environmental, social and governance factors alongside financial considerations when assessing investment opportunities. Social factors consider how companies manage relationships with employees, suppliers, customers and the areas where they operate. Governance factors focus on company leadership. As a company and financial advisers, we are taking more ESG criteria into account when deciding which companies to invest in on behalf of our clients.

We have noticed over the years that there has been an increase in client awareness and interest on sustainability issues and the concept that we all have a part to play in creating a more sustainable planet. There’s also been increasing awareness that businesses focusing on positive environmental, social and governance factors, are likely to perform better than those who don’t in the future.

Sustainable investing requires asset managers to consider how environmental, social, and governance (ESG) issues are being approached by companies in which they may invest. It is sometimes referred to as socially responsible investing (SRI) or sustainable, impact, socially conscious, or principle investing, green or ethical investing. Whichever terminology you use, they are all seeking the same. An investment strategy that considers not only good financial returns but also seeks positive change in a social or environmental manner.

A sustainable investing strategy looks at what a company does as well as its ESG practices and overall investment decision-making process. While this approach is not new, its definition and objectives have evolved over the years. Historically Asset managers would avoid companies who are invested in so-called “sin stocks,” such as tobacco, firearms, alcohol, and casinos. Now they look more holistically, based on ESG factors and EU Sustainability goals. These include areas such as environmental impact (energy performance, waste, recycling, etc), social issues (positive gender equality, work-life balance, etc) and governance quality (conflict resolution and independent auditing, etc).

The belief is that investing in businesses that are managing their ESG risks effectively, not only contribute to broader societal objectives but is also likely to generate higher returns and lower volatility over the long term.

Why should you consider sustainable investing?

One reason to consider an ESG investment strategy is to align your principles with your investments. Secondly to support companies that focus on ESG factors.

So, if you are interested in investing based on your principles, you should get in touch about our sustainable investing strategy.

*Please note: Your capital is at risk. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

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