What is responsible investing, and how can you use your savings as a force for good?
- Credit: Jo Cunningham Photography
Discover how saving for the future can help your family and the planet.
Adrian Hick, from Rodney Spiller Wealth Management in Topsham, a Partner Practice of St. James’s Place Wealth Management, reveals how choosing to invest your savings and pension responsibly can help tackle climate issues, change the way companies operate and help safeguard your family’s financial future.
Q: What is responsible investing?
A: Responsible investing, also known as ethical investing, means factoring in environmental, social and governance (ESG) considerations to your investment decisions. This can include areas like climate impact, water pollution, human rights and ethics, alongside other more traditional criteria when choosing investments.
Environmental issues are at the forefront of everyone’s minds and are considered by The World Economic Forums as amongst the top risks to our global economies (WEF The Global Risks Report 2021 – 16th edition).
Responsible investing is becoming more mainstream and something clients are demanding more of. This is why we believe it’s important to include this in our investment strategies and why St. James's Place develop portfolios that focus on sustainability.
Q: How can people use their money to help the planet?
A: Choosing where to invest your money is one way you can make a positive financial difference for your family and the environment. While making personal changes such as reducing your shower time or taking the train to work instead of driving is important for tackling climate change, moving your investments into an ESG focused-fund can actually have a far larger impact.
Most people nowadays have at least a pension as a source of savings. By choosing ethical funds as part of your investment strategy, an individual can make a powerful contribution to fighting the planet’s climate emergency – and it doesn’t have to mean compromising the performance of their investments.
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Many fund managers believe that ESG factors are beneficial to fund performance (Reddington Responsible investment survey, November 2020), and by aligning the assets of St. James's Place clients and their households, there’s a lot we can do together to help the planet.
Q: How is an investment in companies crucial to helping us achieve the goals discussed at COP26?
A: To meet the UK’s 2030 climate targets, we will need fuel alternatives for transport and heating, more sustainable food production and reductions in our household waste. This could mean therefore investing in growing industries such as recyclables, electric transport and green energy.
St. James’s Place is one of the UK’s largest wealth managers and so can use their influence to have a significant impact on changing the way local and national businesses work to better the environment.
We believe engagement with companies is the best way to make long-term differences and cut carbon emissions. This is why St. James’s Place is a member of initiatives such as the Glasgow Financial Alliance for Net Zero and Climate Action 100+, which seek to support companies in their transition to a low-carbon future.
Rodney Spiller Wealth Management's financial advisers work hard to make investment opportunities like these available so our clients can invest in our planet’s future, while also protecting and helping grow their wealth. Increasing investment in responsible businesses also encourages companies to use cleaner and more efficient industrial processes and focus on the positive social and environmental changes they can make.
The UK is also one of 45 governments moving towards more sustainable farming. Already five of the UK’s biggest supermarkets have made a firm commitment to halve the environmental impact of a weekly food shop by 2030, and by offering investments in these companies we can hopefully encourage more to follow suit (WWF, Leading supermarkets join WWF in pledge to make UK weekly food shop “greener” and help tackle climate change, November 2021).
Q: How can I invest responsibly?
A: Rodney Spiller Wealth Management's financial advisers can help you build a bespoke investment portfolio that suits your financial goals and ethical values. With the right professional advice and information, investing your money, saving for your family’s future and making a positive change for the environment can all work hand in hand at the same time.
One of the first steps you can take is to consult with a financial adviser. They can advise which investments will be best for you and discuss what options are available.
We are committed and passionate about the long-term financial well-being of our clients, and the health of our planet. It’s our focus on the future that enables us to move towards long-term sustainability and to work together with our clients and companies to bring about real change that will benefit generations to come.
Visit rodneyspillerwm.co.uk to discover how you can invest in a brighter future, or call 01392 304080.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.
Rodney Spiller Wealth Management Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.