Ethical and environmental investments
Ethical and environmental investments have become increasingly popular in recent years. Previously it was difficult to achieve good investment returns especially if the investor was strict about the screening of shares. However, in recent years the fund performance of ethical and environmental funds has improved considerably as companies have become increasingly greener.
Ethical research analyst companies’ independent research and analysis focuses on those aspects of corporate activity that concern investors from a moral point of view. Their collective experience enables them to develop an approach that is relevant to investors with a wide variety of ethical concerns.
Their research and analysis encompasses both positive and negative issues with screening criteria covering a broad range of social, human welfare, environmental and animal welfare concerns.
The positive issues that ethical research analyst companies investigate cover products and services with environmental and social benefits; and the ways that companies interact with their employees, suppliers and the communities in which they operate. Positive issues are used in combination with negative concerns to achieve a balanced approach to screening, particularly in the area of environment and human rights.
Positive issues covered by such research include:
• Environmental management and reporting
• Environmentally beneficial products and services
• Human rights policies
• Supply chain and labour standards
The negative issues that researchers look at have developed through their involvement with investors and investment professionals over many years. This process evolves continuously to take account of emerging issues and feedback from clients.
Negative issues covered by researchers include:
• Social issues – such as alcohol, tobacco, gambling, and high-interest consumer credit
• Human rights
• Environmental impacts
• Animal welfare
• Other ethical issues – such as armaments, nuclear power, and genetic modification
Ethical and environmental fund research analysts will screen companies based on a number of criteria for low, medium and high levels of ethical and environmental policies. Investors may then select the fund they want based on their personal tolerance to levels of ethical and environmental behaviour and characteristics.
So if you are interested in investing more ethically and environmentally why not contact us for further advice on this subject? You know it makes sense.
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