This is the most important question, when was the last time you were asked what you were passionate about or what you are totally against?

 

The value of pensions and investments and the income they produce can fall as well as rise, you may get back less than you invested.

 

Everyday people who do not want to apply ethical or social screening to their money are allowing their funds to be used to finance companies and projects that may not support. If your Bank, Insurance, Pension or Investment Company were to ask you if you would mind them using your money to finance a heavily polluting company – what would you say?

 

Ethical, or Sustainable & Responsible Investment offers the opportunity for investors and savers to avoid the companies whose activities they would not want to support, and invest in those operating within a moral framework that reflects their own moral stance.

 

Whatever your concern may be – People, the Planet, Animals, Faith, there are now a large amount of Ethical, or Sustainable & Responsible funds.

Sustainable & Responsible Investment has evolved over the years as to not just avoid investing in companies that took part in practices deemed to be unethical. Investors thought this not enough and wish to influence corporate decisions that are akin to their ethical stance.

 

What Criteria is used?

 

Screening

Negative Screening

Is the practice of exclusion of a certain specific criteria which might involve a companies involvment in one or more of the following:

 

  • The production, sale, and trade of arms and weapons
  • Animal experimentation and intensive farming
  • Tobacco
  • Alcohol
  • Pornography
  • Companies that trade with countries which abuse human rights
  • Environmental pollution
  • Nuclear power
  • The development and use of genetically modified organisms

 

Positive Screening

Is the practice of inclusion of companies which adopt good policies in one or more of the following:

 

  • Have good working practices, conditions, and policies e.g. equal opportunities, investors in people
  • Respect animal welfare
  • Community involvment e.g. those involved in public housing, public transport, healthcare products and services
  • Alternative energy
  • Pollution control
  • Sustainable forestry
  • Organic farming

 

Positive Engagement Investing:

Ethical, or Sustainable & Responsible Investment offers the opportunity for investors and savers to avoid the companies whose activities they would not want to support, and invest in those operating within a moral framework that reflects their own moral stance.

 

  • Positive selection of companies who adopt an ethical approach
  • Shareholders influencing corporate decisions
  • The use of publicity to exert pressure
  • Involve in dialogue with management to encourage positive ethical focus