What is the right sustainable investment approach for me?
Every year more and more sustainable funds are being launched, and more and more investment providers are embedding sustainability into all that they do. For that reason, making camparisons requieres some careful thought.
Every year more and more sustainable funds are being launched, and more and more investment providers are embedding sustainability into all that they do. For that reason, making comparisons requires some careful thought
These are a few pointers that may help you on your journey to finding the right approach for you: i) research your investment provider, ii) consider your investment style, iii) sustainable investment credentials may not be obvious and iv) you can always ask for help.
- Research your investment provider
It’s worth researching how committed any investment fund provider is to embedding sustainability across their business. This can cover everything from how they deal with suppliers and treat their staff, to diversity on their board, to the things they take into account as standard when investing your money, whether it’s in a fund that’s specifically labelled sustainable or not.
- Consider your investment style
It’s possible to be a sustainable investor following a passive or an active management style. Passive funds will track one or more market indices, such as the MSCI Environmental, Social and Governance (ESG) indices, and active funds are constantly analysingdata to make expert, researched decisions about which companies the fund invests in to meet its investment objectives.
- Sustainable investment credentials may not be obvious
When you think of the types of companies you might expect to be held in sustainable investment funds, it may be normal to think of manufacturers of renewable energy for example. But many companies and industries, like Microsoft or Google, are now incorporating sustainability into their culture, including the largest.
- You can always ask for help
They can help you to work through your priorities and do your research, so you can be confident you are investing into options that are suitable for you.
Santander Asset Management was the first asset manager in Spain to integrate ESG factors into our research, our investment platform and product range.