Sustainable and Responsible Investment
Although it’s easy to think that the concept of ‘socially responsible investment’, in all its various guises, is something relatively new and, perhaps, as far as sustainable and responsible investment is concerned, driven by ‘fashionable’ 21st-century concerns about the environment and humanity, it has a rich history that can be traced back to Biblical times.
Despite this heritage, the roots of socially responsible investment – as we perceive it today – are firmly embedded in 18th-century middle-America. Quaker, and then Methodist, investors refused to invest in any company that had links to the slave trade, or those involved in alcohol, gambling, tobacco or armament manufacture – the ‘sin industries’ as they were popularly known at the time. In 1928, specifically with a view to helping investors avoid these industries, the first publicly offered, socially responsible fund – the Pioneer Fund – was offered by an investment group in Boston, Massachusetts.
The concept of socially responsible investment changed up a gear during the 1960s when Vietnam War protestors demanded that university endowment funds were not invested in defence contractors. Winning this argument meant that the long-standing principles of socially responsible investment started to enter, influence and affect main-stream investment philosophy.
Since then, world events have continued to shape socially responsible investment, both in what it means and its significance as an investment strategy. Today, in the 21st century, climate change and the environment have become global issues and their impact on our lives continues to grow. Growing concern about ‘the planet’ has added a ‘green’ element to the mix, and this particular aspect of value-led investment has come to assume prominence, effectively creating what has come to be known as ‘sustainable and responsible investment’.
Apprehension about the problems we may be creating for future generations to suffer, an increasing number of investors want to ensure that they invest their money in only those companies who are doing ‘the right thing’ – and in response to this, companies are reacting to the growing trend of putting ‘values before profit’ and changing their ways of working.
The concept of value-led investment has also proved worthwhile for organizations seeking investors. Research shows that, by addressing the concerns of potential investors and demonstrating that they really do care about the environment, promoting equality and enforcing financial guidelines, organizations can accrue tangible benefits for both themselves and, in return, for those who invest in them.
How can One Financial Solutions help you?
Every investor wants to put their money into a fund that will return a profit, but a growing number consider their own personal values to be equal to, if not more important than profit alone.
Deciding to use ‘sustainable and responsible investment’ as a value-led investment strategy adds an additional layer of complexity to choosing an investment fund as, of course, information about the fund’s environmental, social, ethical and governance credentials need to be considered.
One Financial Solutions is here to help you. We can explain how it works and, with access to information that will allow you to decide exactly which of the various sub-strategies and funds best meet your values, make it a very straightforward process.
So, if you’d like to know more about ‘value-led’ investment strategies as a method of investment, please call us on 020 3714 9565, or ask us to call you by sending an email to email@example.com.