The value of Pensions and Investments can fall as well as rise. You may get back less than you invested.
How we tailor our service
Ethical considerations take many forms. We have a vast knowledge of all approaches to responsible investment.
See the difference your investment makes in real terms to carbon reduction or producing clean water and electricity.
Seek out companies that make a difference to sustainability and environmental practices.
Avoid companies involved in arms dealing, fossil fuels, animal exploitation and more.
Ethical investment ideas
Many people are increasingly wanting their investments to reflect their values and their money to be active in achieving social good. However, it is not always obvious how we can achieve meaningful change with our finances.
There are many options in the area of ethical investing such as, negative screening, positive screening, responsible investment, impact investing and environment and corporate governance screening, but these are only a few.
Get in contact today to discover how you can start making your money work for environmental and social good as well as your investment returns.Discover More
Ethical investing is broadly defined as any investment strategy that actively chooses companies based on their contributions to a pre-defined social good. These areas commonly include, but are not limited to, the environment, social justice and corporate governance. At Virtuo we are experts in making your money to work for you and work for society.
What it means to invest ethically
The approach to ethical investment is usually two-pronged: companies that have good corporate practices, are environmentally friendly and socially responsible are sought after while companies that participate in weapons production, tobacco, gambling, alcohol and/or pornography are discriminated against. It is not simply enough to chase financial gains at any and all costs. We are all familiar with the values of financial assets when it comes to investment, but there is clearly also a value associated with society and the environment. We cannot afford to erode the latter to benefit the former.
The ethical investment market is burgeoning and has flourished since the first UK ethical investment fund was launched in 1985. Today there is a broad spectrum of ethical funds to choose from to suit the needs of any ethical taste whether it is people, planet, animals or faith. Ethics themselves will of course differ amongst individuals or communities and are often totally idiosyncratic, which is why it is important to be sensitive to a variety of ethical issues. Luckily, the possibilities in the ethical fund universe are plentiful and allow us to apply any number of personal or bespoke views on to an investment.
Why investing ethically matters
Perhaps you already know what your ethical concerns are and how they can be reflected in your financial affairs, but a surprising number of investors do not follow through their ethical principles into the impact of their money. The connection is simple and powerful; if you don’t invest in a socially responsible way, then your ethical values and moral worldview will be compromised. Your money matters and it can be used to support your ethics or used to contravene them.
It is easy to feel that applying your finances in a socially responsible way is just a drop in the vast ocean of financial markets. However, we strongly believe in the power of individual action to engender change, especially when it comes to deploying capital. Even a few ethical investments can send ripples across the financial markets and affect the business practices of many companies and increase investment in industries such as clean and renewable energy.
In fact, there is a distinct overlap between thinking ethically and using a sound investment strategy. There is a mounting body of evidence showing that ethical investing, particularly company analysis based on environmental, social and governance (ESG) criteria, is an effective medium to long-term investing strategy. Being mindful about how companies treat their employees, run their businesses and think about their long-term impact on resources and society seems to be self-evidently sound practice when it comes to investment decisions. It particularly encourages investors and fund managers to actively engage with companies and help set the agenda, thinking of stock ownership as owning a slice of a company as opposed to just a piece of paper with a price on it.
One of the most striking examples of how environmental awareness can be lead to positive financial decisions is the idea of ‘stranded assets’, which was first introduced by the Carbon Initiative in their 2011 paper Unburnable Carbon – Are the world’s financial markets carrying a carbon bubble? The paper points out a stark disconnect between global carbon reduction agreements and the value of carbon based assets that many companies hold on their balance sheets.
Essentially, if we are to meet the target of not exceeding a 2°C temperature rise by the year 2050 we can only afford to emit 886 Gigatonnes of Carbon Dioxide (GtCO2), but the world’s total carbon potential based on global reserves will emit a staggering 2795 GtCO2! In financial terms this discrepancy could mean wiping billions of dollars’ worth off of the value of companies associated with fossil fuel reserves. If these companies are not allowed to burn all this carbon, then their assets become ‘stranded’ and expose investors to large losses in value
How can we help you invest ethically?
Many of us at some time in our lives will need at least one of the contracts listed below and any of these can be linked to a socially responsible fund. By Virtuo Wealth Management advising the contract you need and then recommending the fund which best suits your needs, you will be joining a growing core of people who are making a positive statement with their money.
The contracts available include:
· Stakeholder & Personal Pension Plans
· Additional Voluntary Contribution Plans
· Company pension schemes
· Self-Invested Personal Pensions
· Life assurance
· Regular savings
· Lump sum investments
· Individual Savings Accounts
· Discretionary Fund Management