Invest with a Social Conscience

Invest with a Social Conscience

ESG – Environmental, Social & Governance

ESG refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria may help to better determine the future financial performance of companies (return and risk).

Whether or not you agree with activists like Greta Thunberg, or campaign groups like Extinction Rebellion, there’s been a clear societal shift in recent years to recognise the need to tackle problems like climate change or global poverty.

One aspect of that shift is the increasing trend for savers to consider the ESG factors in their investment decisions. ESG investors want to use their money to do good, as well as generate returns.

In the past, ethical and ESG investments were not particularly mainstream or popular, as they did not perform as well as broader portfolios that included so-called “sin stocks” such as oil, tobacco, alcohol or gambling companies.

But this is no longer the case. ESG has gone from a niche corner of the market to a major trend, with many companies considering the environmental and social effect of their businesses. These companies are not losing sight of their “bottom line.” A simple example of Governance is if you treat your staff better, they become more productive and there is less staff turnover.

An increasing number of investors are making it crystal clear that ESG principles are now critical to their thinking.  Ethical investing has become more mainstream and the number of ESG related investment options has grown immensely. But this is not just about being ethical or socially conscious, but about future-proofing your savings. After all, there’s no point in having lots of investments if there’s no planet to live on!

If you are keen for your money to reflect your morals, then at Rutherford Hughes Ltd we have the technology to offer fully ESG rated portfolios to suit your needs.

 

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