Any colour as long as it’s green? Making sense of sustainable finance (SFDR)
We want many things from our investments. But above all, an investment needs to be sustainable – in the broadest sense of the word. If the instrument you’re investing in isn’t going to be there in a few years when you need it, there is a major problem. Recent changes in Europe known as SFDR […]
What is ethical investing?
Ethical investing means selecting your investments based on a certain set of moral or ethical principles. Typically, it is about putting money into investments that are sustainable in terms of the environment, social impact, and good governance – as well as profit. Ethical investing involves decisions on what to exclude, and what to include in […]
Ethical investing returns
Many investors wonder if investing ethically means you must sacrifice investment returns. In fact, there is evidence (from MSCI and others) that ESG investing can improve long-term investor returns by reducing certain risks in investment portfolios. This seems plausible, because a key focus of ethical investing is to question how sustainable a particular investment is likely to […]
ESG, SRI, and impact investing: what’s the difference?
As you might expect with a new and evolving area of investing, there are a number of ways to describe ethical investing. Environmental, social, and governance investing Environmental, social, and governance, or ESG, captures the three most common aims for people investing ethically. A potential investment’s environmental impact is important to many investors. That might […]
