Search
Client Login
Sustainable investments are made with the intention to generate positive, measurable, social, environmental and financial return.
As consumers, we are all becoming more aware of the influence our buying choices can have. Investing is no different. Sustainable investing is a result of this growing awareness, with funds designed to help investors support companies who are proactively working to make a difference with their products, services and supply chain.
By choosing to invest in a responsible way, you can support companies who are actively working to make a difference through their products/services, governance, supply chain, or charitable actions.
How? Creating sustainable investments requires high levels of reporting and transparency between investment managers, fund managers, and the companies being invested in. Investment managers look for companies that provide clear, honest information about their practices and performance, and decide whether to include them in their investment holdings.
Companies in industries which impact society or the environment negatively, such as tobacco, oil, gambling etc. are not considered.
Companies are analysed based on what they are actively doing through their products and services to generate a positive impact. The ethical criteria used can lead to different investing ‘themes’, such as socially responsible investing, clean energy or sustainable agriculture.
Sustainable investments are still investments, intended to generate a financial return, and will be considered in line with your risk and performance requirements.
Our investment advice already considers your personal situation, investment goals, attitude to risk and timescales, all of which your adviser will discuss with you. Sustainable investing simply adds another layer. During our fact find, where we get to know you we’ll ask about:
The Sustainable Development Goals (SDGs) are a set of global goals with related targets created by the UN, to create a shared plan for a better future for people and the planet. These 17 goals help align government legislation, businesses activities, and investment fund composition. We use the SDGs to support conversations with your adviser about the causes you care about and establish your priorities.
Even if you want to invest, your financial adviser can help you make sure you’re ready. Here are some questions you can ask yourself to see if investing is right for you:
Investments are often made for the medium to long-term, often five years or more. If you are not able to accept that you may not have access to these funds, you could consider other saving products, rather than investing.
The value of investments can go down as well as up, and gains are not guaranteed. When talking to a financial adviser about your plans, they will discuss you ‘attitude to risk’ which your emotion around risk and ability to withstand losses.
When you’re investing, you’re investing in funds that spread risk across multiple companies, industries, and sometimes even countries. Diversifying risk is an important concept in investing – and for those interested in sustainable investments, investors often want a closer look at exactly what their money is invested in.
Nick Chaitow interviewed by Citywire
“Natural capital is simply the world’s stock of natural resources. It includes everything we see and touch, the air that we breathe, the water, animals, organisms. The balance of these systems and how they interact with each other is the key where investors are becoming more aware and recognising this and they want to support companies that are making a difference to that natural balance while creating long-term value for their investors.”
Nick Chaitow, Chartered Financial Planner, Wren Sterling
clients
assets managed
Financial Planners
Customers investing in sustainable investment products must be able to trust the sustainability claims made by companies. Find out more about the FCA’s sustainability labels.
Our guide can help you invest in a responsible way.
It’s not enough to look at a fund’s title. Terms like ‘green’, ‘sustainable’ or ‘ethical’ can be used by anyone. There are lots of terms used to describe Sustainable investments by different sources, ‘ethical’, ‘responsible’ and ‘sustainable’ are just a few. This has led to ‘greenwashing’ as some companies make stretching claims about their ethical practices Our core suite of Sustainable Investments includes a range of solutions, which our Investment Committee constantly monitor and review.
In February 2024, the FCA introduced new labels to improve the trust and transparency of sustainable investment products and reduce greenwashing. These new labels are designed to help you find funds to meet your sustainability objectives.
The Sustainable Development Goals (SDGs) are a set of global goals with related targets created by the UN, to create a shared plan for a better future for people and the planet. These 17 goals help align government legislation, businesses activities, and investment fund composition.
The UK’s SDR requires all labelled funds to have at least 70 per cent of assets aligned with the fund’s sustainability objective. We use the SDGs to support conversations with your adviser about the causes you care about and establish your priorities.
There is no minimum amount you can invest – but this may mean that investing in certain products may not suitable for you. Investments are often made for the medium to long-term, often five years or more. If you are not able to accept that you may not have access to these funds, you could consider other saving products, rather than investing.
When looking for sustainable funds, there are some core concepts that you will learn more about:
Sustainable investments are still investments. Beginner investors will soon become familiar with concepts such as:
ESG (which stands for environmental, social and governmental) is a catch all term for ethical investments. It is used on many ways, and there is no universal meaning what makes a ESG fund. Use of this term in the industry led to the creation of the SDGs. It is important to avoid funds which have been incorrectly labelled as sustainable funds – and investing in opposition to your goals.
The value of your investments can go down as well as up, so you could get back less than you invested. Past performance is not a reliable indicator of future performance.
