Sustainable Investing

Where people, planet and profit can live together.

What is Sustainable Investing?

Sustainable investing, or Socially Responsible Investing (SRI) is the practice of investing into companies that ‘do good’ (or, at the very least, ‘do no harm’) to the environment and the community.

These companies have sustainable business practices capable of being continued indefinitely, without causing harm to current or future generations, on the expectation that they have higher investment potential over the long term.

SRI has always been at the heart of our investment philosophy since we launched our first SRI portfolio in 2008 and allows you to align your values to your investment objectives.

Pros and cons of socially responsible investing

Kim Holding, Portfolio Manager at Ellis Bates

Giving you peace of mind

We screen and choose all our funds, not just SRI portfolios, against a range of Environmental, Social and Governance (ESG) factors so you can see the impact your investments are having. Visit our ESG Investing page to see the criteria we use to screen our SRI funds.

Why are SRI funds important to us?

Kim Holding, Portfolio Manager at Ellis Bates

Frequently Asked Questions

What is Greenwashing?

Greenwashing is the practice of companies making misleading environmental claims for marketing purposes without following through with their pledges. In doing so, companies aim to improve their reputation, to attract environmentally and socially aware consumers and investors and, in turn, to increase profits.

As more companies jump on the ‘sustainable’ bandwagon, washing is becoming increasingly common, so it’s important for investors must conduct thorough due diligence on the companies and funds they are considering. This may involve reviewing third-party ESG ratings, examining a company’s sustainability reports and scrutinising the portfolio holdings of ESG focused funds.

What is Net Zero?

There is no single definition of “net zero”, so not every target that organisations set is the same. Some talk about becoming “carbon negative” or “climate positive” (in other words, they are removing carbon from the atmosphere). Others talk about becoming “net zero” or “carbon neutral” (they are offsetting their CO2 emissions via other projects, such as tree planting). Others talk still about becoming “climate neutral” (they are referring to all greenhouse gases, not just CO2). This vast array of terminology can be confusing.

What are Scope 1, 2 and 3 Emissions?

When organisations talk about Scope 1 emissions, these are emissions that come directly from their own operations. Scope 2 emissions are indirect emissions from the generation of their purchased energy. Scope 3 emissions are emissions from end-users, which these can be much larger than Scope 1 and 2 emissions combined.

Download our Socially Responsible Investing Guide

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What is the Conference of the Parties (COP)?

The Conference of the Parties (or COP for short) is the name given to the parties of the United Nations Framework Convention on Climate Change (UNFCCC), which is the world’s largest treaty for addressing climate change. COP is an important platform for nations to discuss and reach consensus on how to protect the world in terms of environmental issues.

COP27, held in 2022 in Egypt, sought renewed solidarity between countries to deliver on their previously agreed pledges; and an agreement was reached for a ‘loss and damage’, fund whereby rich nations are being urged to increase their financial aid to poorer countries impacted by climate change.

Impact on climate change
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Green pension funds
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Green pensions
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Asset Allocation
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