<\/p>\n
The urgency of addressing climate change cannot be overstated, but it is not our only challenge. We must also confront the rapid loss of biodiversity, which threatens the natural balance of ecosystems, and the pervasive problem of plastic pollution that chokes our waterways and oceans.<\/p>\n
Integrating sustainable practices into our daily lives <\/strong> This shift in mindset is essential for addressing the complex and interconnected issues we face. Investing in sustainable solutions and companies that adhere to ethical practices can drive positive change, ensuring that our economic activities support the planet rather than deplete it.<\/p>\n Putting sustainability at the heart of your decisions<\/strong> Understanding responsible investing<\/strong> The evolving landscape of ESG factors<\/strong> Aligning your personal values with your investments<\/strong> The concept of stewardship<\/strong> Questions to consider when reviewing your investments<\/strong> Evaluating your pension fund<\/strong> Investing your money in a more purposeful way for societal good<\/strong> Making a difference for the benefit of people and the planet<\/strong> THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.<\/p>\n THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.<\/p>\n THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.<\/p>\n","protected":false},"excerpt":{"rendered":" The imperative of collective action and responsible investment What we do collectively this decade \u2013 including how we invest \u2013 could mark the difference between starkly different futures. Our actions now will determine whether we face a future plagued by environmental degradation or one where we have successfully mitigated some of the most pressing ecological […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts\/4822"}],"collection":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/comments?post=4822"}],"version-history":[{"count":0,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/posts\/4822\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/media?parent=4822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/categories?post=4822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.broadviewfinancialservices.co.uk\/news\/wp-json\/wp\/v2\/tags?post=4822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nSustainability is not merely a \u2018nice to do\u2019 but an indispensable necessity. Integrating sustainable practices into our daily lives and investment decisions is crucial for creating a liveable future. By prioritising sustainability, we help preserve the environment and foster a society that values long-term wellbeing over short-term gains.<\/p>\n
\nOur everyday choices are guided by our values and beliefs, whether consciously or not. For example, we\u2019re likely to think twice about buying clothes from a fast-fashion retailer that has been found to exploit its workforce. We rarely know the full story behind the products we buy, but when unethical and unsustainable practices come to light\u2014and they increasingly do\u2014our moral compass kicks in.<\/p>\n
\nMany terms are used, but responsible investing \u2013 or you may know it as sustainable or ESG (Environmental, Social and Governance) investing \u2013 is about taking this \u2018full story\u2019 into account. It\u2019s essentially asking a wider range of questions about how wisely a company is managed and whether it is acting in harmony with the kind of world we want to live in. This may seem like common sense, but it wasn\u2019t long ago that ESG factors tended to be overlooked compared to financial information, such as a company\u2019s profits and cash flows.<\/p>\n
\nBut fund managers, regulators and investors are now aware that these factors are just as important in assessing a company\u2019s likely future health. Our investment choices can drive change, influencing how businesses operate and their impact on the world. Aligning personal values with investments can lead to more ethical and sustainable outcomes, benefiting society and the environment.<\/p>\n
\nYour pension is not just a pot of money you and your employer add to over time. Through our retirement savings, we\u2019re all likely to be shareholders in (and lenders to) companies worldwide. We can choose what types of funds we invest in, and as shareholders, we can influence how companies are managed through the providers and fund managers who look after our pension savings.<\/p>\n
\nThis is often referred to as \u2018stewardship\u2019 and can be practised by any fund, whether it has a sustainability label or not. Some funds go a step further and explicitly target positive environmental and social impacts alongside financial returns. These investments aim not only to generate profits but also to benefit society and the environment.<\/p>\n
\nMost pension savers are invested in a scheme default fund \u2013 the fund that is automatically selected for you if you don\u2019t make an active choice yourself. Increasingly, default funds consider ESG factors, but they may do this differently. For example, they may exclude certain types of companies from investment \u2013 such as those involved in tobacco production, controversial weapons or thermal coal extraction.<\/p>\n
\nThey may also increase or decrease the weighting (the percentage invested) in companies based on a specific factor, such as carbon emissions or ESG scores. A small amount of research \u2013 simply logging into your pension account and looking at the factsheets for the funds you\u2019re invested in \u2013 will help you understand whether they align with your values and preferences.<\/p>\n
\nIt\u2019s about asking questions: What is my pension fund doing to include sustainability considerations? Are the underlying investments in my portfolio aligned with my values? If they\u2019re not, is my fund manager voting and engaging to nudge misaligned companies in the right direction? Or are there more suitable funds for me?<\/p>\n
\nWe\u2019re all looking for ways to help make a difference for the benefit of people and the planet. While taking the more obvious actions such as recycling and taking public transport is important, ensuring that our pensions are invested sustainably and aligned with our personal values could also positively influence our world. Navigating different responsible investment approaches and funds isn\u2019t easy, so obtaining professional financial advice is important to discuss which investments are right for you.<\/p>\n