Sustainable Investment Options

The earliest sustainable investment efforts focused on eliminating exposure to harmful industries, as practiced by religious groups that divested from slave trade assets and civil rights groups that divested from weapons, tobacco and alcohol. Today, many investments apply ESG criteria as a core component of their investment process and focus on sustainable opportunities such as clean energy, water infrastructure and ethical business practices. Read more :theinvestorscentre.co.uk

Climate change is a top priority for investors, with most members of the UN-convened Net Zero Asset Owner Alliance aiming to eliminate the amount of greenhouse gases emitted by their portfolios (known as net zero) by 2050. Investors are also increasingly recognizing their responsibility to respect human rights, as highlighted by the PRI’s Responsible Investment Principles (RIP).

Sustainable Investment Options: Grow Your Wealth Responsibly

Many investments today apply negative and positive ESG screening to exclude companies with poor ESG practices and include those that meet certain sustainability criteria. Others apply more targeted ESG strategies aimed at making measurable social and ecological impacts in addition to financial returns, which are often referred to as impact investments.

Investing sustainably starts with clarifying your personal values and financial goals. Some people find it helpful to use ESG checklists* or talk with a customer advisor to help clarify their priorities. Then, they can look for sustainable shares, funds and ETFs that align with those priorities – just like with conventional investments. They can also choose to invest with companies that are transparent about their ESG practices, or to use their shareholder rights to advocate for better corporate practices and transparency.