Ethical investing is the practice of considering an organisation’s values as well as its profitability when deciding to invest. Otherwise known as responsible investment, the term covers issues relating to how a business approaches issues such as climate change, health issues, workers’ rights, gender equality and arms sales.
Key Features of Ethical Investments
Achieve A Set Goal
Tailored To You
Build A Secure Foundation
Peace Of Mind
Identify Hidden Risks
Here at Lazenby’s Financial Services, we are proud to provide clients across Leeds with a range of advice and financial plans to both new and existing clients, including:
What is ethical investing and how do you do it?
To avoid investing in an organisation whose practices you are not comfortable with, research is required and, as with all investment funds, it’s important to make sure you’re in a position to invest.
The first step is to pick the ethical practices you are passionate about as this will help narrow your search for investments and potentially build an investment portfolio that takes multiple issues into account.
It can also be as simple as avoiding any industries that cause harm such as tobacco, armaments, or those that participate in animal testing.
A fully committed investor may look to build an ethical portfolio comprised exclusively of sustainable funds in companies with high standards regarding the environment, society and how they are run.
What are the advantages of ethical investing?
Ethical Funds are a popular choice for people with many concerns about environmental and social issues. Investing ethically can provide the satisfaction that comes from putting personal values into practice, as well as offering the potential for financial return.
Unwittingly, many people may be directly financing the arms trade, environmental destruction or human rights abuse through their Bank accounts, Life Assurance, Pension, Savings and Investment Plans. For instance, who can clearly state they do not share their Bank (and therefore their money) with an arms company, one that uses child labour to manufacture its goods or a company contributing unnecessarily to climate change.
Much of the problem with investing lies in the fact that when the savings, investments or pension payments of thousands of people are pooled together, the money is invested on the stock market. This money is going to be invested in companies with the sole aim of maximising the return at any cost. This is your money and your future, but how can you be sure that your future is not being rapidly destroyed by your own investments? The economics of the ‘quick buck’ can be so destructive. They work against all the laws of sustainable growth, of working within the limits of the planet’s resources and the clear natural law that if we destroy our planet, we destroy ourselves.
Ethical, or Socially Responsible, Investment offers the opportunity for investors and savers to avoid the companies whose activities they would not want to support and invest in those operating within a moral framework that reflects their own moral stance.
What are the different ways to invest ethically?
Ethical investments have a lot of variations, but most typically include sustainable investing, socially responsible investing, green investing and impact investing.
Sustainable investing refers to a strategy of sustainable and responsible investment that is concentrated on companies with sustainable business practices.
The difference between this and green investing is while the environment plays a significant part in sustainable investing, the focus is not solely on recycling and cutting climate change-inducing emissions.
Instead, sustainable companies address sustainability in a manner of ways including diversity and inclusion and strong corporate governance practices.
Socially responsible investments
Socially responsible investments are perhaps the most common form of ethical investing and refer to investments made where the nature of the business the company conducts is regarded as important as its likelihood to provide a return.
Socially responsible investments can be made by funding individual companies with good social value or through a socially conscious mutual fund or exchange-traded fund.
Green investment funds refer to the practice of only investing in companies that are considered environmentally responsible.
Usually, this means screening out companies that do not use green energy or are in some way involved in fossil fuel extraction.
Green funds are often spread across a wide range of companies across different industries, which helps to limit the risks for investors. However, it is possible to focus specifically on one sector such as renewable energy or in energy storage infrastructure.
Impact investing is about making a positive change – as well as a financial gain – through investments. The aim is for the impact funds to create value for you as an investor as well as benefitting the wider world at the same time.
Impact investors regularly monitor the performance of their assets against environmental, social, and governance goals and there is often a focus on transparency in investments
Why choose Lazenby’s Financial Services for ethical investments?
Our team of fund managers has the required expertise to help you build a secure financial future through ethical investing.
As well as traditional investment advice such as inheritance tax and retirement planning, we are also able to advise on investing ethically and ensuring that your investments make a positive impact.
Lazenby’s Financial services are a family-run team. We are proud to combine a friendly, personable service with the latest independent financial advice and expertise to ensure peace of mind and financial clarity. We understand how important a secure financial future is, for yourself and for your loved ones.
The initial meeting with us is complimentary. This allows us to get to know you and discuss your needs. It is a no-obligation opportunity to show you how we work and help you learn about the range of services we offer.
With You For Life
Wealth management shouldn’t be a one-off event. Our review service helps you to navigate a clear path to your goals and adjust any plans if necessary. It is our job to ensure you are on track to meet your objectives and are empowered with the latest independent advice.
“What can I say? It’s all about the pots! Meet Alan, and you’ll very quickly know what I’m talking about.
His knowledge and expertise in the world of investments and wealth management is truly exceptional. For a person who isn’t the best with numbers and calculations, Alan has helped me understand, plan and more importantly, put into practice a long-term financial plan that will ultimately mean I will be able to retire when I want to, knowing that my financial future from that point on, is secure.
If you’re a young business owner, like me, I strongly advise that you speak to Alan about sorting out your financial future.
I cannot recommend his services highly enough.”
– R Harvey
Got A Question About Ethical Investments?
For professional ethical investments in Leeds with a personal touch, why not get in touch for a free, informal initial consultation. We can arrange your first meeting to be in our Leeds office or over the phone – whichever is best for you.
NB: The value of pension and investments and the income they produce can fall as well as rise. You may get back less than you invested. Past performance is no indicator of future performance, and investments can go down as well as up.
Whatever independent financial planning advice you need, we promise both quality and good care – speak to an IFA in Leeds now, or drop us a line with your questions.