Are you looking for expert advice to make ethically considerate, responsible investments?
We take responsible investment seriously.
Advice on Responsible Investment Options
Investments with social and environmental aspirations, also known as ESG Funds
We are proud of managing funds that take environmental and social concerns seriously, but ultimately we are advocates of ESG investing because we believe that it should generate better outcomes for our investors over the long term which, after all, is our primary objective.
One of the fundamental parts of our research process is to ensure that we only delegate management of our funds to third-party Investment Managers that share our values. To this end, we insist that all of our Managers are, and remain, signatories to both the UN PRI and the UK Stewardship Code, which we believe represent sensible standards of ESG integration.
Please note. HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen. The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Key terms explained
Responsible InvestingAn umbrella term used to incorporate many aspects of non-traditional investing, including environmental, social, governance and ethical components. It is often focused on avoiding unnecessary risks, and should not usually involve having to accept lower returns
Ethical InvestingInvesting in line with your personal ethical beliefs and standards. This is personal, as everyone will have slightly different ethical preferences and beliefs, but examples might be a blanket ban on investing in companies that generate more than a certain percentage of their revenues from activities related to gambling or from tobacco products because the investor feels strongly about how these issues impact society.
Sustainable InvestingActively seeking companies with positive ESG products, processes or services which may make them more profitable, or better placed to take advantage of emerging trends in order to improve environmental, social and/or governance outcomes. An example might be a company operating in the renewable energy field, or one that is reducing the cost of healthcare to make it more affordable for all.
Impact InvestingInvesting with the express intention of generating a positive impact on the environment or society. Note that this may be (although is not always) at the expense of some monetary return. An example could be investing in social housing, or in companies that offer employment in areas where unemployment is high.
We have long believed that investment should be directed towards companies that operate under sound environmental and social policies and that have strong governance structures. Over and above the positive benefits to the environment and society, such companies are likely to be better managed, more capable of effective capital allocation and less likely to face regulatory pressures: factors that should ultimately be reflected in a company’s share price and investors’ returns.
Throp Financial Planning is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited who are authorised and regulated by the Financial Conduct Authority. The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable or available in any other country which may have access to it.