Solution introduction
The Age of Responsible Capital
Environmental and social issues are becoming more entrenched and harder to ignore, whilst people everywhere are growing increasingly concerned for the future of the planet and for society’s ability to function in the interest of everyone
Whilst many have been calling for change for a while now, this voice has gained momentum over the last 18 months calling for a kinder form of capitalism centred on the idea of conscious consumerism. This progress has also been felt in the asset management industry, but what does this mean for you and your clients, and how can you integrate Responsible investment into your business.
Responsible investment
Responsible investment has gained a lot of traction over recent years, and we believe that the momentum of trajectory in this field will only strengthen. Responsible investment is where managers actively and intentionally seek to do good, avoid doing harm and lead change by investing in companies which are helping to meet the world’s most pressing challenges, whilst avoiding or seeking to improve those which perpetuate our problems.
At Square Mile, we see Responsible investment as an umbrella term from which stems a spectrum of differing investment approaches, ranging from those that exclude certain securities or sectors to those that are focused on delivering a positive and measurable impact to society and/or the environment.
Types of responsible investment
- Ethical exclusion
Avoids industries and company practices that cause harm to people or the planet. - Responsible practices
Considers the operational practices of the companies in which they invest and supports ‘best practice’, as well as encouraging them to improve their environmental and social performance. - Sustainable solutions
Seeks to invest in companies that are providing solutions to social and environmental challenges and believes in the long-term financial benefits of doing so. - Impact investing
Wants to use their money to make a wider positive social or environmental impact as well as meeting their financial needs and wants to see evidence of this impact.
The Square Mile Sustainable Portfolio Range has been designed to provide advisers with exposure to Responsible investment funds which seek to do good, avoid doing harm and/or lead change without sacrificing long-term growth.
Currently, our portfolios span the four categories of Responsible investment, as detailed below. Therefore, they may be of interest to investors who wish to achieve both their financial and socio-environmental goals.
