ESG Investing  

What clients need to know about ESG investing

  • Explain the key terms around ESG investing
  • Identify the key reasons for investing responsibly
  • Identify the organisations and initiatives looking to drive change
CPD
Approx.30min

If you are a stakeholder speak to your investment manager to ensure that your voting rights are being correctly utilised

Investors should identify both the tangible and intangible benefits of deploying their capital for positive influence and map these against the various supranational initiatives, such as the UNs 17 SDGs, to determine success

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The market is expansive and continues to balloon as it evolves. It is essential that investors thoroughly research funds.

Although a fund may rank highly against its peers, it may still have a holding in a company that could be considered unethical.  It’s a grey area, so take time to understand underlying holdings as seemingly similar mandates can often hold very different companies 

There is a mass of information online to help investors identify key thematic mega-trends for the future.

Care has to be taken to detect a true opportunity from corporate greenwashing, so do your research, think long-term and once invested remind yourself from time to time why you bought the theme in the first place 

Investor capital is an important mechanism for change, if responsibly deployed. 

Harry Merrison is an investment manager at Kingswood

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. True or false, Socially Responsible Investment (SRI) generally focuses on excluding ‘sin-stocks’ from the investment pool based on negative screening guidelines.

  2. The 10 Global compact Principles fall under which areas?

  3. True or false, under the human rights principle, businesses should support and respect the protection of internationally proclaimed human rights and make sure that they are not complicit in human rights abuses.

  4. Which is not one of the Six Principles of Responsible Investment?

  5. Which of these is not a reason given for why the underperformance of ESG investing is no longer accepted by all?

  6. Which is the following is not a core component of the Green Bond Principles?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain the key terms around ESG investing
  • Identify the key reasons for investing responsibly
  • Identify the organisations and initiatives looking to drive change

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