‘Green’ can said to work at many levels. There’s a general term that’s become widely recognised, combining not just environmental, but social and governance factors, There is probably no agreed industry wide definition of ESG investing – but it could be described as seeking to incorporate 3 factors into a fund manager’s investment decisions. ESG investing covers 3 important areas:-
- Environmental – taking into account climate change, greenhouse emissions, renewable energy, resource depletion, waste and pollution and deforestation
- Social – working conditions, local communities, conflict, health and safety, employee relations and diversity
- Governance – executive pay, bribery and corruption, political lobbying and broad diversity.
The depth of these objectives means that achieving an ESG outcome is time consuming and complex, and continual screening of funds and companies is required to ensure that the overall fund will keep meeting investors expectations. Because we have many clients asking for ESG, it means that we can spread the time-cost of this type of screening down to a minimum for our clients. As independent financial advisers, we are able to provide clients with planning and products from the whole of the financial marketplace.