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Sustainable investing

Let’s help make the world a better place together…

As part of our drive to become a carbon neutral business, we have been researching ways in which individuals can integrate their sustainability values with their investment goals.

Do you, like me, feel a wave of helplessness wash over you when you watch the news? What can we, as individuals, do about the bush fires in Australia or the floods in the Philippines?

Yes, we can all do our bit by recycling more, driving an electric or hybrid vehicle or travelling by train. But sometimes this just feels like a drop in the plastic-filled ocean.

As citizens, we can express our political preferences around environmental issues through the ballot box. But, are the politicians ever going to put our planet before their political aspirations?

While so many big businesses are making big money from the way things are currently done, what incentive do they have to change?

What about how and where we invest? Can we have more of a say, without compromising our desired investment objectives?

2 Days with Dimensional

I recently had the pleasure of spending a couple of days at Dimensional’s office in London, during which I got to spend time with some of their fund management team.

I came away both inspired and encouraged that it is now possible to build ESG (environmental, social and corporate governance) sustainable portfolios that incorporate our and DFA’s key philosophies – namely a focus on reliable sources of higher expected returns whilst minimising unnecessary turnover and trading costs.

In practise this involves using a holistic scoring system that allows you to still preserve diversification while recognising those companies with positive environmental profiles.

A Suggested Approach to Sustainability Investing

The key takeaway from this article is that deciding to invest well and deciding to incorporate your values around sustainability need not be mutually exclusive. You can use your money to encourage those businesses doing the right thing, without it being the wrong thing for you.

We are actively researching this area and hope shortly to be able to offer you an alternative way of investing – one that is sustainable but with similar characteristics and expected returns to the portfolios you currently invest in.

If this is of interest, please watch this space!

RISKS
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There are no guarantee strategies will be successful.
Environmental and social screens may limit investment opportunities.