If you could invest for the future in an ethical and sustainable way which gives you an attractive financial return, would you do it?!
In days gone by, ethical investing meant that you would avoid the “bad” companies, such as tobacco, guns, oil etc, and so your fund performance suffered because of it as those were some of the best performing companies.
Fast forward to today and that is no longer the case. Now you can avoid those things, but also invest in ethical and sustainable companies that are innovative, doing good for the world, and that are growing, enhancing your financial future as well as that of the planet.
At Blueberry Financial we have started to use Positive Impact Portfolios for client’s money to do just that.
The investment process is guided by the United Nations’ Sustainable Development Goals – a global framework for action to solve the most urgent and challenging needs of society and the environment.
Many of the companies in the Positive Impact portfolios supply essential products and services into healthcare systems worldwide. Several are directly involved in the search for a Covid-19 vaccine. The investment process naturally leads to the exclusion of fossil fuel extractors as these companies are major contributors to the climate crisis and helps companies that are focusing on renewal energy sources.
Indeed, the positive impact approach itself favours companies that are trying to do good and run their businesses in a sustainable manner. Such companies avoid fines and other penalties; they have stronger relationships with their customers, suppliers and employees. Furthermore, they tend to operate in emerging sectors with high-growth potential.
Taking the example of healthcare companies that are working towards developing treatments for Alzheimer’s disease. This presents a huge opportunity today and in the future, with populations aging, the prevalence of the disease is increasing too – estimated change from 46 to 131.5 million patients by 2050.
Climate change, and our need to limit our Earth’s warming to 1.5°C in order to prevent the most devastating effects on the planet, drives the demand for the green energy transition. The UK government, for example, plans to have ‘netzero’ greenhouse gas emissions by 2050. Some of the most well-known renewable energy technologies convert wind and solar energy into electricity for human use – without carbon emissions. Geothermal energy technologies also harness zero-carbon energy sources: the continuous flow of heat from the Earth’s hot centre to the Earth’s cooler surface. Our positive impact portfolios invest in companies that invest in these technologies.
This is Brill windmill where I grew up. I used to love running up and down the hills to the windmill. Wind turbines look a little different these days, but I love them too.
Impact made per £1m invested, including:
- 352 tonnes of CO2 avoided – equivalent to taking 77 cars off the road
- 25 tonnes of waste recycled – equivalent to 26 households’ waste
- 202 MWh of renewable energy generated – equivalent to 61 homes’ usage
- 178m litres of clean water provided – equivalent to 1,404 households’ use
- 402 hours of school, higher and adult education delivered
Contact us if you want to hear more about it.
There are so many examples of cool companies that you can invest in to make the world a better place.
