'Ethical investment is investment which explicitly
seeks to take environmental, social and ethical issues into
account.'
...or, less formally
Ethical investment means choosing investments that
reflect your values.
You've heard about ethical investment and think it's a good
idea that you'll get round to next year... or the year after.
Don't put off making a decision - you'll be missing out on
the opportunity of aligning the power of your money with
the direction of your values.
With a large number ethical investment funds now available,
Bromige has the expertise to help you choose the fund
that meets your own criteria wherever you live and whatever
your needs - individual or organisational.
The Stock Market
Many people may be surprised to hear they have some sort
of investment in the stock market. This does not just mean
those who own shares (which you can invest in directly and
ethically using Bromige's Ethical Stockbroking Services).
Most pensions, endowment mortgages and other savings schemes
are based on funds of money that are invested in shares.
Most of these funds aim only to meet financial goals.
They tend to invest your money without concern for
your moral and ethical values.
There are three broad approaches
to ethical investment, the best funds tend to combine all
three.
Negative :
might include avoiding those companies
involved in areas such as:
- The arms trade
- Nuclear power/fuel
- Repressive regimes
- The tobacco industry
- Anti-trades union activity
- Animal experimentation
- Third World debt/exploitation
Positive :
where fund managers will actively seek to invest in
companies whose products or services are of long-term benefit
to the communities in which they operate and/or contribute
to a better environment, might include:
- A good safety record
- Openness about activities
- Pollution control
- Energy conservation
- Production of recycling equipment
- Equal Opportunities Policy
Dialogue and Engagement : Encourages more
responsible business standards, when there is a strong
business case for change . This approach
can be done separately to or in combination with screening.
Fund managers will engage on areas such as
- Inappropriate remuneration
- Social responsibility
- Climate change
Whichever combination of approaches you decide to take,
it is important to get independent advice from a qualified, ethical Independent
Financial Advisor such as Bromige.
It makes financial sense as well as moral sense
to invest in companies which are planning ahead to create
a better environment.
