Challenging the throwaway society and the rise of Socially Responsible Investing

After years of campaigning by NGOs, it took a seminal wildlife documentary – Blue Planet II – to get politicians to pay attention to the devastation being wrought by the disposal of plastics.

More than eight million tonnes of plastic are discarded into the oceans every year, equivalent to 16 full shopping bags for every metre of the world’s coastline.

Policy experiments have proven remarkably effective. The UK’s plastic bag charge cut usage by 85%1. We expect to see similar policy initiatives developed in 2018. Single-use plastic bottles are a likely target, given that a million plastic bottles are sold every minute, but only a small percentage of which are made from recycled materials.

There is a potential cost here for companies which have to change their production processes – but it also opens up opportunities for those developing innovative new packaging solutions.

‘More than eight million tonnes of plastic are discarded into the oceans every year, equivalent to 16 full shopping bags for every metre of the world’s coastline’.  But how much plastic is there really in the ocean?

The United Nations 17 Sustainable Development Goals (SDGs) which are a blueprint for a better world, cover issues from poverty, inequality, the environment, to education and public health, and the SDGs identify 169 targets to track progress towards the 2030 target date.

Responsibility for achieving progress was once seen very clearly as the duty of governments, perhaps with the help of charities and NGOs to fill the gaps.

But times have changed. We are shifting to a new paradigm where both companies, and investors in them, are expected to recognise that their actions have wider consequences on the economy and society, and to think deeply about how they can square their duties to deliver risk adjusted returns with the imperative to manage these consequences.

What does that mean in practice for investors? As well as further growth in the rapidly-expanding Socially Responsible investing industry, we also anticipate further momentum behind efforts to measure portfolio-wide sustainability impacts, as investors seek to demonstrate their understanding of their alignment with the SDGs.

 

The 17 Sustainable Development Goals (SDGs) to transform our world

In September 2015, the General Assembly of the United Nations adopted the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs). Building on the principle of “leaving no one behind”, the new Agenda emphasises a holistic approach to achieving sustainable development for all.  The SDGs also explicitly include disability and persons with disabilities.

The 17 sustainable development goals (SDGs) are:

GOAL 1: No Poverty

GOAL 2: Zero Hunger

GOAL 3: Good Health and Well-being

GOAL 4: Quality Education

GOAL 5: Gender Equality

GOAL 6: Clean Water and Sanitation

GOAL 7: Affordable and Clean Energy

GOAL 8: Decent Work and Economic Growth

GOAL 9: Industry, Innovation and Infrastructure

GOAL 10: Reduced Inequality

GOAL 11: Sustainable Cities and Communities

GOAL 12: Responsible Consumption and Production

GOAL 13: Climate Action

GOAL 14: Life Below Water

GOAL 15: Life on Land

GOAL 16: Peace and Justice Strong Institutions

GOAL 17: Partnerships to achieve the Goal

 

What is all this to do with investment you ask?  Of the face of it, not a lot. But it is a indication of the greater emphasise of ethical and socially responsible considerations and another reason why we as a company are finding more and more people wanting to invest in producs that are both ethical and socially responsible in their outlook.

If you would like more information please give us a call.

Challenging the throwaway society

Challenging the throwaway society – ocean plastics highlight wasteful consumption habits

After years of campaigning by NGOs (Non-governmental organisations), it took a seminal wildlife documentary – Blue Planet II – to get politicians to pay attention to the devastation being wrought by the disposal of plastics. More than eight million tonnes of plastic are discarded into the oceans every year, equivalent to 16 full shopping bags for every metre of the world’s coastline.

Policy experiments have proven remarkably effective. The UK’s plastic bag charge cut usage by 85% and we expect to see similar policy initiatives developed in 2018. Single-use plastic bottles are a likely target, given that a million plastic bottles are sold every minute, but only a small percentage of which are made from recycled materials. There is a potential cost here for companies which have to change their production processes – but it also opens up opportunities for those developing innovative new packaging solutions.

If Socially Responsible Investing is something that interests you and you would like to find out more about it, give us a call.  We would be happy to meet and have a chat with you

Talking to clients about Ethical and Sustainable investing

Ethical Investing – Now a Main Stream Investment Strategy?

 Twenty years ago, ethical investing was seen very much as a pure values-based, exclusionary investment process.

Over time, this has developed into sustainability and engagement and now there are more funds focusing on companies which make a positive impact on their environment.

According to one IFA, “There is a pervading view that values-led investing is still about negative exclusion. 

“The market has become increasingly complex and unless advisers have a personal interest in the area, positive investing is not likely to be viewed favourably.”

The growth of funds available is important, as ethical bank Triodos revealed most investors want their money to create positive change by investing in progressive and pioneering businesses. 

Its latest research says 79 per cent of investors want to see a fairer and sustainable society, but 67 per cent of investors have never been offered ethical or sustainable investment opportunities.

While it’s encouraging to see further evidence of the growing demand for sustainable and responsible investment opportunities, the fact that two thirds of investors have never been offered them suggests a worrying disconnect.

The survey also revealed 55 per cent of people believe businesses have the power to solve many of the biggest challenges the world faces today, and 71 per cent say businesses have the power to create positive social and environmental change.  Should your investments be of an Ethical Nature.  At ABFM we advise a large number of clients on Ethical and Socially Responsible Investing.  We can take account of your risk profile and diversify your investments at the same time. 

If this is of interest to you, give us a call.