“The term ESG is less than two decades old, but it may already be coming to the end of its useful life.” That's the opening sentence of the article How ESG came to a reckoning published earlier this month by the Financial Times. My reaction to that intro? I do hope...
If we want to include impact investing in all occupational pension schemes then we need to consider how we do this not only for those who are auto-enrolled but also for legacy schemes. There is considerable wealth tucked away in closed private sector pension schemes....
Sustainable investing is following a well-trodden path. As a new investment trend gains popularity, it becomes more sophisticated as people get to grips with the concept. What started out as risk management has turned into making a positive change. In my last post I...
Just like life, sustainable investing is a journey. When investors take their first step, they tend to focus on risk and look to exclude the most egregious companies from their portfolios. As they become more comfortable with this way of building portfolios they think...
While the majority of the working population pays into an auto-enrolled defined contribution pot, the bulk of the UK’s current private sector pension wealth is concentrated in closed defined benefit portfolios. That’s because auto-enrolled pensions have only existed...
There is a potential storm brewing between scheme members and pension providers over investing in fossil fuel companies. Six out of 10 UK adults do not want financial firms to support or profit from fossil fuel extraction. That’s what a recent survey by Opinium...
Employees are increasingly aware their pension pots can be used to help to protect the planet and improve society. That’s a result of climate change becoming more salient and the success of campaigning groups such as Make My Money Matter. This represents both an...
Now we have established environmental, social and governance factors are not a form of sustainable investing but instead a tool, we can turn our attention to the way they are used in standard workplace pension schemes. In this post, I explained how examining ESG...
Feedback is so helpful. I thought my last post explained why I feel frustrated when asset managers talk about ESG investing. But the useful comments I received in response to posting on LinkedIn made me realise I had not been clear. Using a TLA as a descriptor adds to...
Sustainable investing terminology can be perplexing. Rather than clearly define their terms, asset managers assume a high level of prior knowledge and frequently lapse into jargon. As I outlined in my first post, this lack of clarity creates confusion. Referring to...
By providing capital to companies, investors have influence on executive boards. When used wisely, shareholder voting rights and debt negotiations can persuade companies to act outside of their comfort zone. In my last post, I explained how investors could choose to...
Investors face a choice about how to treat companies with less than perfect sustainability characteristics – they can exclude them from their portfolio or they can invest in them and aim to change corporate behaviour. As my first blog post outlined, excluding...
Sustainable investing can be a confusing concept. That’s because it covers a range of different investment styles and there is a lack of clear definitions. The spectrum of capital as outlined here by Karen Shackleton is a useful framework to gain a great understanding...
When an investment trend emerges you can count on the asset management sector to develop terminology which is loosely defined, populated with three-letter acronyms and usually creates more confusion than clarity. Sustainable investing is no exception. Managers will...