Sustainable Investing – What’s it all about?

Sustainable investing conjures up images of so-called “green funds” that invest solely in wind power, solar panels and other renewable technologies.

The reality is that over the years there have been many misconceptions about what are and what aren’t, ‘sustainable’ funds. In the same way that your investment goals will be unique to you, your views on sustainable investment will also be unique to you. Investors seeking a ‘sustainable’ strategy need to be confident that their money is being used in a way that really does make a social difference whilst meeting their financial needs.

Known under many different headings – ‘socially responsible’, ‘green’ or ‘ethical’, a sustainable investing strategy seeks to maximise environmental, social and financial gains. Typical Sustainable investments are in new technologies, biotechnologies and new infrastructure such as schools, Hospitals, electric cars and so forth.

Investors in general, are now starting to realise that they can affect change in society through their investments. By choosing sustainable funds, the investor is helping to mark these much-needed changes in society, while meeting their financial objectives. Investors are becoming more aware that they don’t necessarily have to choose between “doing well” and “doing good”.

 

It’s not all about avoiding the bad

It is now relatively mainstream for investors to wish to screen out investments which may harm the planet, its people or the global economy. Investing in a sustainable manner, will help the world to have measurable environmental and social outcomes and for companies to have better corporate governance.

With all the talk of climate change and how this is going to affect the world over the coming years, sustainable investing is growing quickly and has become mainstream.

Investors care about the legacy they leave for their children and grandchildren, and can participate fully or partially via their pensions, ISA’s or general investments.

For more information about your investment needs and sustainable investing, talk to your financial adviser.

Bread and Butter Advice offer friendly, regulated and financial advice, and can help with your investment strategy.  For a free consultation with one of our Financial Advisers, please call us on 0800 0151 069 Or you can e-mail enquiries@breadandbutteradvice.co.uk