Searches for Sustainable Investments Soar +208% this week

With growing interest in social and environmental responsibility, more people are starting to realise the power their wealth holds

 
Over the last year, Arbuthnot Latham’s team of researchers have found that Google searches for ‘best green energy stocks’ have increased by +23%, while ‘green investment funds’ have surged by +126% and ‘corporate social investment’ has risen by +67%. These trends reflect a significant shift towards sustainable investing, where individuals seek to align their financial decisions with their values.

The experts at Arbuthnot Latham share insights on how to get started with sustainable investing as part of your overall investment strategy.
 

What is ESG Investing?

 
ESG (Environmental, Social, and Governance) or “Sustainable” investing involves considering the following when constructing a portfolio.
 

• An investment’s environmental impact
• Social responsibility
• Corporate governance practices

 
Investments that score high in these areas are often seen as more sustainable. ESG investing goes beyond simply avoiding companies with negative impacts; it actively seeks out investments making a positive difference in these areas.
 

Benefits of Sustainable Investments

 
Sustainable investments offer dual benefits: aligning your wealth with personal values and contributing to positive societal impact.

Investing in companies that resonate with your environmental and social views not only fosters a sense of satisfaction but also enables financial growth in line with your goals.
 

The Impact of Your Wealth

 
One of the most compelling reasons to consider ESG investing is the ability to make a difference. By investing in companies impacting the world positively, you can help drive change in the areas that mean the most to you and your family.
 

Ways that you can use your wealth for good:

• Investing in renewable energy companies
• Supporting businesses prioritising social responsibility
• Investing in companies that lead in diversity and inclusion

 
Lydia Reynard, Senior Investment Manager at Arbuthnot Latham, says: “Sustainable investing can mean different things to different people, but you should always focus on what is most important to you when investing your savings.”

“You should engage with your investment manager on whether they can accommodate your objectives into the investment strategy or consider if you would be happy to compromise on any of your objectives. Some objectives may require trade-offs with other portfolio objectives, such as expected returns or diversification. As such, an in-depth discussion may be helpful to ensure you are comfortable with your investment portfolio.”
 

The Journey to Sustainable Investing: A Case Study from Arbuthnot Latham

 
A significant part of managing a client’s money is about understanding what is important to them. For Colin and Charlotte, living in the countryside and surrounded by nature, sustainability became a core aspect of their investment strategy.

Beyond day-to-day actions like recycling, they realised that a significant way to take ownership of sustainability was through where they were investing. However, as Charlotte noted, “Do I actually know what I’m investing in? Not really, I find it hard work.”

This is where Arbuthnot Latham stepped in. Julia Tyrrell, their relationship manager, and Freddie Gabbertas, their investment manager, worked closely with Colin and Charlotte to transition their investments into a sustainable portfolio.

Now, Colin and Charlotte feel that their investments are having a bigger impact on sustainability than anything else they are doing, while still adhering to the same risk constraints they are comfortable with. They have been impressed with the ongoing management and oversight, particularly when a fund no longer met the standards and was sold.

Sustainable investing can be complex, and working with experts who understand the nuances of ESG investing is essential. We manage a range of investment strategies, including ESG strategies. Our investment experts can help you find a strategy that best aligns with your goals and financial values.

For more information about sustainable investing and what this truly means, visit: https://www.arbuthnotlatham.co.uk/insights/introduction-esg-investing or get in touch with the team at Arbuthnot Latham.