Financial jargon can be hard to keep track of at the best of times – and just when you think you’ve gotten a handle on the latest money mutterings; they change all over again.
But whether it’s termed green, ethical, ESG (environmental, social & governance) or sustainable investing, the aim is generally the same: it’s making money while making the world a better place, and it’s clear this is a fast-growing market.
Historically, ethical investing focused on excluding specific companies and sectors – like tobacco or arms. Today though, most strategies have evolved to include companies that have best in class ESG scores in a particular sector. Whilst impact investing goes a step further by investing in companies whose products and services generate social and environmental impact as well as financial returns.
Investment choice
At EQ Investors (EQ), we offer a wide range of sustainable investment options across the green investment universe which can be tailored to suit your goals.
With a ten-year track record, the EQ Positive Impact Portfolios are mapped against the UN Sustainable Development Goals and designed to address the biggest challenges faced by humanity.
Our EQ Future Leaders Portfolios combine the growing preference for socially responsible portfolios with the increasing popularity of low-cost passive funds. The core of the portfolios invests in businesses that are strong performers when measured on environmental, social and governance (ESG) criteria. They also invest in sustainable sectors, such as clean energy, healthcare, and green bonds.
Launched in early 2022, the EQ Climate Action Portfolios allow you to align your financial goals with the global effort to reduce climate change risks and reach net zero. They invest in companies on a credible path science-based path to net-zero, companies ahead of the curb in carbon efficiency and those whose products and services provide solutions to decarbonisation.
Carbon footprint
Going forward investment portfolios will need to continuously decarbonise to tackle global climate change and low emissions portfolios are better prepared for climate change transition risk, so we measure the carbon footprint for all our portfolios.
Sustainability vs returns
But no investment is included based on its environmental or social credentials alone – it must also aim to deliver an attractive return for investors. Demand is being driven by this combination and an increasing number of people who prefer to invest in alignment with their personal values.
Studies from heavy-hitting financial institutions including Morgan Stanley & Schroders have shown that sustainable investing can enhance returns while reducing risk. This makes sense when you consider this approach favours companies that are actively trying to do good and run their businesses in a sustainable way.
Such companies avoid fines and other penalties and have stronger relationships with their customers, suppliers, and employees. Moreover, they tend to operate in new sectors with high-growth potential. In short, these are the green companies of the future, and those we want to be invested in.
Getting some help
Suitable for ISAs and personal pensions, we’ll provide all the investment advice you need, so you can just sit back and check your performance online, anytime.
If you would like to find out more, please get in touch.
Please remember, this content is provided for information purposes only. Investment involves risk. Past performance is not a guarantee or indication of future results. Investment return and the principal value of an investment may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, to determine the risks associated with the investment and its suitability.
