If like me you are concerned about the environment and the future of the planet for generations to come , it can be confusing as to how best to make a positive difference.
There is a lot of coverage and promotion around Green Pension and Investment Funds, Renewable Pension and Investment Funds, Sustainable Investing, ESG Bond Funds
Why listen to me?
I could tell you that I drive an electric car, don’t eat meat, buy my energy from a green source, hey I even keep bees but the single biggest impact I am making is through my pension fund.
Why Is This Important Now?
Last 10 years hottest on record
25% of the worlds population lives on less than $3 per day
Only 7.8% of CEO's in America's Top 500 Companies are Women
Ask not what the planet can do for you but… ?
- Switch to an electric car?
- Stop Flying?
- Become a vegeterian?
- Switch to green energy provider?
20 times more powerful by moving to a Green Pension Invesment Fund.
3 Ways To Invest Responsibly – Which One Are You?
- Decisions Based On Ethical Or Religious Grounds
- Investment Process Tends To Exclude Certain Investments Rather Than Include
- Performance Of Assets Not A Major Consideration
- There Tends To Be No Engagement With Stakeholders
- Decisions Based on ESG Scores and Measurements
- Investment Process Based On Positive Screening
- Consideration Given To The Performance Of Assets
- Strong Engagement And Performing
- Tend To Follow The Sustainable Development Goals Framework
- Objectives And Outcomes Are Measurable
- Focus On Socio-Enviroment
- Investing In Climate, Water and Renewables
The ESG Acronym refers to the 3 Pillars of sustainability namely:
- Green House Gas Emissions
- Energy Usage
- Air Quality
- Climate Change
- Gender Reform
- Standards Of Labour
- Human Capital
- Stakeholder Relations
- Corporate Governance
- Corporate Behaviour
- Financial Security
How do SDG’s and ESG differ?
Sustainable Development Goals
- Developed By UN
- Global Sustainable Goals
- 17 Goals and 169 Targets
- Time Goal Of Implementation By 2030
- Rating System Used By Companies
- Not Necessarily Global – More Supply Chain And Operational Reach
- No Set Targets Or Goals
- No Time Scale Invovled Focused On Longer Term
Do They Work Together? YES
Esg examines factors relating to a product/ production process or indeed an organization as a whole and whether it is contributing positively in the area’s environment , society and governance. The sustainable development goals set the framework or guidelines to allow progess towards the more sustainable product/ production process or organization.
On their own sdg’s cannot bring the type of change necessary as there is no inforcement power and without applying esg framework in the area’s of workers rights, wages, child labour , corruption , bribery etc sustainability cannot be achieved
40 Shades of Green? Well 2 anyway.
LIGHT GREEN: ARTICLE 8 FUNDS
An Article 8 promotes environmental and social characteristics
Example in the Irish Pension And Investment Market:
Aviva’s Multi Asset Funds
- 3 Choices based on Risk Orientation
Multi Asset Approach Using Equity, Bonds, Cash In Different Quantities
DARK GREEN: ARTICLE 9 FUNDS
Article 9 funds have and objective of “sustainable investment”
Example in the Irish Pension and Investment Market:
Standard Life’s Global Equity Impact Fund
The fund aims to generate growth over the long term by investing in equities which aim to create positive measurable environmental and/or social impacts.
Take our 1 minute questionnaire
|Not Important||Quite Important||Very Important|
|How important is it to me that my personal values and beliefs are reflected in the way that I invest?|
|How important is it that my fund provider invests more in companies that are addressing environmental, social and governance factors?|
|How important is it that my fund provider considers and promotes environmental, social and governance issues?|
|How important is it that my fund provider invests in companies that address specific sustainability issues?|
|How important is it that my fund provider actively encourages companies that it invests in to consider ESG issues?|