You’ve probably got a reusable coffee cup and take your own bags to the supermarket. You might be a conscious consumer and opt for sustainable clothing brands over ‘fast fashion’. But did you know that responsible investment strategies amounted to more than $20 trillion in 2018, according to the Global Sustainable Investment Alliance?

Since the millennium, investors have become more concerned about the ethical impact of their investments. However, over the last couple of years, as conscious consumerism has come to the forefront of society, pressure has grown on investors to put their money where their mouth is.

Companies in a variety of sectors are creating socially and environmentally friendly products for consumers to buy, and managers to invest in. Responsible consumerism and investing are intertwined, and the rise in demand is set to continue. 

ESG, impact investing, ethical investing, sustainable investing – the list goes on. These terms are used to describe the values and beliefs which dictate where investors put their hard-earned money. They sit collectively under the umbrella of ‘responsible investing’, which aims to seek returns for shareholders alongside a positive long-term impact on the society, environment and the economy.

Here, we help you understand the terminology and briefly explain the different approaches to responsible investing in a growing part of the market. If you’re not investing already, you may want to consider these factors when choosing where to stick your cash.

ESG integration

The process of investing with a systematic and explicit inclusion of environmental, social and governance (ESG) risks falls under ESG integration. Understanding how a company is treating the environment, its workforce and how it is governed can help build up a better picture of a company’s share price and value.

Impact investing

This type of investment – in businesses that are designed to generate measurable social and environmental benefits alongside a financial return – is at the forefront of the responsible investing spectrum. It is usually based around one of the 17 Sustainable Development Goals that were set out by the UN in 2015, and which include such aims as gender equality or solving hunger.

Ethical investing

There are strict criteria applied via negative screens which exclude/limit exposure to companies or sectors deemed to be unethical or socially irresponsible. The most common exclusions are usually controversial weapons, fossil fuels and tobacco.

Sustainable investing

This involves fully incorporating ESG factors into the investment process and investing in companies that provide a positive contribution to sustainable trends. Sustainable Investing can be undertaken by ‘positive screens’ that try to narrow down companies with sustainability at their core. For example, companies may have products or services that are solving challenges such as plastic pollution, climate change or poverty.

 

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

You’ve probably got a reusable coffee cup and take your own bags to the supermarket. You might be a conscious consumer and opt for sustainable clothing brands over ‘fast fashion’. But did you know that responsible investment strategies amounted to more than $20 trillion in 2018, according to the Global Sustainable Investment Alliance?

Since the millennium, investors have become more concerned about the ethical impact of their investments. However, over the last couple of years, as conscious consumerism has come to the forefront of society, pressure has grown on investors to put their money where their mouth is.

Companies in a variety of sectors are creating socially and environmentally friendly products for consumers to buy, and managers to invest in. Responsible consumerism and investing are intertwined, and the rise in demand is set to continue. 

ESG, impact investing, ethical investing, sustainable investing – the list goes on. These terms are used to describe the values and beliefs which dictate where investors put their hard-earned money. They sit collectively under the umbrella of ‘responsible investing’, which aims to seek returns for shareholders alongside a positive long-term impact on the society, environment and the economy.

Here, we help you understand the terminology and briefly explain the different approaches to responsible investing in a growing part of the market. If you’re not investing already, you may want to consider these factors when choosing where to stick your cash.

ESG integration

The process of investing with a systematic and explicit inclusion of environmental, social and governance (ESG) risks falls under ESG integration. Understanding how a company is treating the environment, its workforce and how it is governed can help build up a better picture of a company’s share price and value.

Impact investing

This type of investment – in businesses that are designed to generate measurable social and environmental benefits alongside a financial return – is at the forefront of the responsible investing spectrum. It is usually based around one of the 17 Sustainable Development Goals that were set out by the UN in 2015, and which include such aims as gender equality or solving hunger.

Ethical investing

There are strict criteria applied via negative screens which exclude/limit exposure to companies or sectors deemed to be unethical or socially irresponsible. The most common exclusions are usually controversial weapons, fossil fuels and tobacco.

Sustainable investing

This involves fully incorporating ESG factors into the investment process and investing in companies that provide a positive contribution to sustainable trends. Sustainable Investing can be undertaken by ‘positive screens’ that try to narrow down companies with sustainability at their core. For example, companies may have products or services that are solving challenges such as plastic pollution, climate change or poverty.

 

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

You’ve probably got a reusable coffee cup and take your own bags to the supermarket. You might be a conscious consumer and opt for sustainable clothing brands over ‘fast fashion’. But did you know that responsible investment strategies amounted to more than $20 trillion in 2018, according to the Global Sustainable Investment Alliance?

Since the millennium, investors have become more concerned about the ethical impact of their investments. However, over the last couple of years, as conscious consumerism has come to the forefront of society, pressure has grown on investors to put their money where their mouth is.

Companies in a variety of sectors are creating socially and environmentally friendly products for consumers to buy, and managers to invest in. Responsible consumerism and investing are intertwined, and the rise in demand is set to continue. 

ESG, impact investing, ethical investing, sustainable investing – the list goes on. These terms are used to describe the values and beliefs which dictate where investors put their hard-earned money. They sit collectively under the umbrella of ‘responsible investing’, which aims to seek returns for shareholders alongside a positive long-term impact on the society, environment and the economy.

Here, we help you understand the terminology and briefly explain the different approaches to responsible investing in a growing part of the market. If you’re not investing already, you may want to consider these factors when choosing where to stick your cash.

ESG integration

The process of investing with a systematic and explicit inclusion of environmental, social and governance (ESG) risks falls under ESG integration. Understanding how a company is treating the environment, its workforce and how it is governed can help build up a better picture of a company’s share price and value.

Impact investing

This type of investment – in businesses that are designed to generate measurable social and environmental benefits alongside a financial return – is at the forefront of the responsible investing spectrum. It is usually based around one of the 17 Sustainable Development Goals that were set out by the UN in 2015, and which include such aims as gender equality or solving hunger.

Ethical investing

There are strict criteria applied via negative screens which exclude/limit exposure to companies or sectors deemed to be unethical or socially irresponsible. The most common exclusions are usually controversial weapons, fossil fuels and tobacco.

Sustainable investing

This involves fully incorporating ESG factors into the investment process and investing in companies that provide a positive contribution to sustainable trends. Sustainable Investing can be undertaken by ‘positive screens’ that try to narrow down companies with sustainability at their core. For example, companies may have products or services that are solving challenges such as plastic pollution, climate change or poverty.

 

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

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