Responsible Investment

With issues such as climate change and deepening social injustices crossing into the sphere of personal finance, investors increasingly want to know where their money is going and what good it is doing. As such, there has been a seismic shift towards Responsible Investment (RI).

RI 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 harm or seeking to improve those which perpetuate our problems.

Responsible Investor types

At Square Mile, we see RI as an umbrella term from which stems a spectrum of differing investment approaches. These range from those which exclude certain sectors to those that are focused on positive and measurable impact to society and/or the environment. We have identified four pillars to RI that we believe helps to ascertain the type of investor your client may be. These are not mutually exclusive, but it’s helpful to identify which approach best resonates with you.

Responsible Investment

Ethical Exclusions

An ethical exclusions fund manager seeks to avoids industries and company practices that cause harm to people or the planet.

Responsible Practices

A responsible practices fund manager considers the operational practices of the companies in which they invest and supports 'best practice' in their respective industries, as well as encouraging them to improve their environmental and social performance.

Sustainable Solutions

A sustainable solutions fund manager seeks to invest in companies that are providing solutions to social and environmental challenges through their core products and services in the belief that this will realise long-term financial benefits.

Impact Investing

An impact fund will have clear intent to make a wider positive social or environmental impact. The fund will be substantiated by investment in companies providing solutions to social and environmental challenges through their core products and services, with evidence provided of the social and environmental impact.

SUSTAINABLE PORTFOLIOS

Focussing on funds which explicitly aim to reduce the negative impact of their investments in society and the environment, as well as offer attractive returns.
Find out more
IMPACT PORTFOLIOS

Alongside the financial goal, these portfolios aim to deliver a demonstrable positive impact in accordance with the 3D Investing framework – to do good, avoid harm and lead change.
By analysing the underlying holdings, we aim to determine the proportion of your client’s money being allocated to different social and environmental themes.
Read more