Everywhere you look there is evidence that people are becoming increasingly concerned with environmental welfare. Voluntarily using a plastic straw today would be typically frowned upon, and protests have forced many major corporations to ban supplying and stocking them. Vegetarians and vegans are soon expected to make up a quarter of the global population, with 2019 being coined the ‘year of the vegan’.
How times change. It’s hard to believe that 40 years ago, when Money Observer was first published, Margaret Thatcher had come to power months previously, Franco’s era in Spain had ended only four years earlier and the UK had just three television channels. On average, men at state pension age lived for just five years (now it’s more than 14) the average price of a home was just under £14,000 and a pint of milk cost 15p.
The asset manager for a changing world” seems a fitting description of BNP Paribas Asset Management, following its recent research paper on renewable energy versus oil. In ‘The death toll for petrol’, Mark Lewis, the investment bank’s global head of sustainability research, sets out a compelling case for long-term investment in renewable energy for transportation, when assessed in terms of the energy return on capital invested – shortened to EROCI.
This year has been one of weather extremes. By April, the UK had already experienced almost 100 wildfires, making 2019 the worst year for such fires on record. Flooding in Lincolnshire in June drove hundreds of people from their homes. Then a late-July heatwave engulfed Europe, sending temperatures in France above 45 degrees for the first time on record. With such terrifying evidence of climate change before us, combating it has never been more urgent.
Investors hoping to incorporate environmental or other ethical concerns when investing, face a litany of acronyms and terminology: sustainable investing, environmental, social and governance (ESG), Socially responsible investing and social impact investing, to name a few.
We are delighted to have been invited to create a model fund-based ‘ethical’ portfolio for readers to follow. But before we introduce you to our fund selection, let’s quickly establish our approach to the task in hand.
The world faces numerous challenges, from climate change to modern slavery. But while these issues grab the headlines, what do they actually mean for investors? How are these issues reflected in investment decisions? And is there a gender divide when it comes to investing with the planet in mind?
At Aberdeen Standard Investments, we are long-term investors. A critical part of this means knowing and understanding the environmental, social and governance (ESG) factors affecting the prospects of the investments we make on behalf of clients.
Ethical, socially responsible, green, sustainable or impact investing: call it what you will, there’s never been a greater choice of investment products designed to help your money make a positive change in the world.
Sustainable investing is gaining traction among retail investors, and not just with millennials and women. People of all ages and genders are looking to increase their investment in companies with good environmental, social and governance (ESG) standards.
Sarasin Responsible Global Equity is unusual in having a prescribed ‘buylist’ from which the manager can choose. The list of 120 equities is constructed by a team of 15 analysts at Sarasin & Partners, the fund’s managing company, headed by Jerry Thomas, co-manager of Sarasin Responsible Global Equity as well as a number of the company’s other funds.