n today’s world, people are increasingly passionate about social and environmental issues, and this is impacting their financial decisions. Leaving a positive legacy beyond immediate family and supporting causes they care about are becoming priorities, as seen in the rise of charitable bequests. Another option gaining popularity is sustainable investing.
But what exactly is sustainable investing? It encompasses various investment approaches that strive for positive social, ethical, and environmental outcomes while delivering long-term financial returns. Let’s explore some examples:
- Ethical and sustainable company investments
- Environmental projects like renewable energy infrastructure
- Investments in cooperatives and social enterprises
- Support for recycling initiatives
- Backing businesses addressing climate change and global inequality
One might wonder if sustainable investments offer comparable returns to traditional investments. It’s important to note that all investments carry risks, regardless of their sustainability. Market fluctuations affect industries across the board, and countless factors can influence performance.
However, environmental, social, and governance (ESG) factors can impact share prices, potentially making some sustainable investments more resilient and potentially more lucrative in the long run. This dual benefit of attractive returns and positive impact appeals to many.
As sustainability gains momentum among consumers and businesses, sustainable investing is poised to grow. Nevertheless, seeking advice from a professional financial adviser is wise. They can guide you through investment options, assess risk tolerance, and align your sustainable investments with your broader financial and lifestyle goals.
If you have any questions about sustainable investing or wish to explore sustainable options to diversify your portfolio, reach out to us. Our team of experts is ready to assist you.
This article should not be construed as advice, and no investment decisions should be made without first seeking advice.
The value of any investment and the income derived from it can fall as well as rise and investors may get back less than they initially invested.
You should only invest if you are prepared to make medium to long-term commitment, i.e. for five years or longer, and are prepared to lose money. You should have adequate other reserves to meet your short-term liabilities.
Past performance is not a guide to the future performance of any fund or investment.
All reasonable efforts have been made to ensure the accuracy of the data provided here, but where information has been provided by third parties no warranties can be given.
Murdoch Asset Management Limited is authorised and regulated by the Financial Conduct Authority. You should be aware that advice in relation to tax planning and trusts is not regulated by the Financial Conduct Authority and are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service.