Socially Responsible Investing
your investment can bring positive change for the world
Many of our clients are concerned about the nature of their investments and the environmental or ethical record of the companies involved. Many want to invest in companies helping to solve the world’s challenges and those businesses that generate a measurable social or environmental benefit alongside an investment return.
At Bright Future Financial, we can help you invest wisely while tailoring your portfolio to drive positive social and environmental change.
Viewing investment decisions through a sustainability lens
We believe strongly that those businesses which have high environmental, social and governance (ESG) standards are more likely to generate sustainable, long-term returns which is why we believe investment decisions should be viewed through a sustainability lens. Investing with a socially responsible focus is investing in companies that do business in a fair and progressive way, delivering a positive impact alongside potentially attractive financial returns.
Environmental, social and governance (ESG) factors
Environmental, social and governance (or ESG), are non-financial considerations that inform investment decisions based on an assessment of the risks these factors pose to your investments.
ESG is not about what a company manufactures or sells, but how it goes about it. It’s a consideration concerning the impact companies are having upon the planet today and in the future.
Environmental
Looking at environmental credentials helps determine how a company performs in relation to the natural environment.
- Energy use
- Carbon emissions
- Pollution and waste
- Raw material sourcing
- Renewable energy and efficiency
- Recycling
- Deforestation
- Water stress
- Innovation and clean technology
Social
Social criteria examine a company’s relationships with its employees and the communities in which it operates.
- Workers conditions and rights
- Corporate citizenship
- Community engagement
- Consumer protection
- Diversity
- Child labour
Governance
Governance factors concern a company’s structure, procedures and practices.
- Business ethics
- Equity and Diversity
- Fair treatment of labour
- Health & safety
- Shareholder rights
- Executive pay
- Tax transparency
- Anti-competitive practices
Does investing with a conscience mean giving up returns?
It is often assumed that socially responsible investing means sacrificing performance, but it may actually improve long term returns.
There is evidence that companies that meet high ESG standards tend to outperform those that do not. For instance, the MSCI Socially Responsible Indices in the US, UK, Europe and Asia Pacific, which are focused on companies that score highly on ESG, have been outstripping their conventional equivalent indices in recent years.
Companies managing environmental, social and governance risks well should avoid major pitfalls or controversies, be less likely to attract negative publicity or even a customer backlash.
Compelling case to adopt a responsible investment approach
Responsible investing means favouring companies that value long term sustainability, not just short term profitability, and in the long run that can lead to better long-term returns for investors.
We believe there is a compelling case for investors to adopt a responsible investment approach and it should be standard practice for ESG characteristics to be considered prominently alongside traditional financial metrics.
It is now easier than ever to invest in alignment with your personal values. We can help you take a more responsible approach to investing by investing in funds that work towards a bright future for the world without compromising on investment returns.
Bright Future Financial provides independent investment advice to clients across East Devon, West Dorset and South Somerset including Exeter, Exmouth, Budleigh Salterton, Sidmouth, Honiton, Seaton, Axminster, Lyme Regis, Bridport, Dorchester, Weymouth and Taunton.
If you're looking for an independent financial adviser with expertise in socially responsible investments, please contact us to arrange a FREE no obligation consultation.
