The rise of thematic investing:...
We explain what’s meant by thematic investing, and examines how it...
Explore your options with sustainable investments that support your values.
In recent years, there has been a major shift in investment strategies, with many investors starting to align their investments with their values. Simply put, responsible investing does what it says on the tin: investing in responsible companies, or companies that promote responsible practices. But what does that actually mean in practice?
There are three different levels of responsible investing: Socially Responsible Investing, ESG and Impact Investing.
Socially Responsible Investing involves evaluating investments based on ethical guidelines. Investors tend to remove investments with negative ethical factors, such as tobacco and firearms.
ESG stands for Environmental, Social and Governance. It refers to the evaluation of a company’s behaviour and business model to determine its sustainability and ethical impact.
For decades, the UN has worked with countries to create a plan of action to improve human lives and protect the environment. In 2015, the 2030 Agenda for Sustainable Development was introduced and adopted by all UN Member states, with the aim to provide ‘a shared blueprint for peace and prosperity for people and the planet, now and into the future.’
The Share Centre supports the Transition Pathway Initiative (TPI), a free to use tool for investors to assess companies’ preparedness for the transition to a low-carbon economy.