ESG Investing

ESG investing refers to a strategy that considers a company’s environmental, social, and governance practices alongside traditional financial measures. 

Environmental factors may include pollution and climate change policies. Social factors can involve labour practices and diversity, and governance factors might examine board structure and executive pay. 

Examples of ESG investment sectors include sustainable energy companies and socially responsible corporations.

ESG stands for Environmental, Social, and Governance. These are three key factors used to measure the sustainability and societal impact of an investment in a company or business.

The benefits of ESG investing can include aligning investments with personal values, and reducing exposure to risks associated with poor ESG practices.

Additionally, ESG investing offers both financial and societal benefits. Financially, companies with strong ESG practices often demonstrate long-term resilience and sustainability and could be considered a good long-term investment.

Societally, it supports companies making positive environmental and social impacts, promoting ethical business practices and contributing to a more sustainable world.

The different types of ESG investing include negative screening (avoiding investments in certain industries or companies), and positive screening (seeking out companies with good ESG practices).

Additionally, impact investing (investing in companies or funds with the intention of generating positive social or environmental impact) is another type of ESG investment.

We can’t say if you ‘should’ as it’s a matter of personal choice and one that is aligned with your beliefs and wealth goals. However, to summsriase why some people choose to deploy an ESG investment strategy, here are some to consider.

Investing in ESG stocks can align your investments with your values, and potentially reduce the risk associated with poor ESG practices. It can bring an element of ‘feel-good-factor’ to your portfolio.

Furthermore, if you think about the renewable energy space being a potentially high-growth industry, there is the potential for significant returns over time. In the interests of clarity, we’re not suggesting that high returns from ESG investments are guaranteed, we are simply using the renewable energy sector as an example of potential.

Like many investment opportunities, it is always sensible to weigh up the pros and cons. 

The pros of ESG investing include aligning investments with personal values, reducing exposure to risks associated with poor ESG practices, and potentially achieving long-term financial performance. 

On the other hand, the cons include potential limitations on investment choices and uncertainty around the impact of ESG factors on financial performance.

Our fee structure is clear, open, and transparent. We charge a yearly fee which is a percentage of your funds under management. 

Yes absolutely.  The first meeting and consultation is on us. This is where we enter into a detailed fact-finding exercise where we ascertain your investment goals, your tolerance and attitude to risk, available investible assets, and long-term goals.

This initial meeting can be in the comfort of your own home, at your offices, ours, or via Zoom.

Further to ESG, we offer the following investment management services:

• Penson management and advice – personal pensions, SIPPs, and defined contribution.
• Bespoke investment management -ISAs, stocks, funds, bonds, VCTs, and EIS

Furthermore, you may be interested in our wealth management services.