Investing for Good

This idea is powerful and one many people get behind when they find out about it.


It’s the basic principle of allocating some of your investments, pensions, or savings to be directed into funds or companies that are “doing good”.


This is a broad description and captures several different strands, that include helping the environment, supporting ethical practices and companies that have high corporate standards.

You may hear different umbrella terms applied within this field, terms such as:


  • Environmental Social and Governance (ESG) investing
  • Socially Responsible Investing (SRI)
  • Positive Impact Investing


AGILITY prefers the term ESG, as the framework around this across the entire business world are now well-established, for example with companies and governments actively pursuing carbon net zero targets.


Is ESG an investment opportunity?


Yes, is the short answer!


You could be forgiven for thinking that you need to trade between your desired returns from your investments and the “doing good” aspect. However, it does appear that the two are not in any form of opposition.


ESG presents one of the greatest commercial opportunities of our time and the companies that embrace this opportunity fully are positioning themselves for improved chances of financial outperformance.


The ESG market is not all about the new 'disruptor' companies, although they do play an important role, but the well-established companies with significant legacy ESG issues/processes will have the greatest impact.


In some cases, the degree of the proposed change and the targeted timescales for change within these organisations will be critical to their very survival.


Is ESG an investment opportunity?


Yes, is the short answer!


You could be forgiven for thinking that you need to trade between your desired returns from your investments and the “doing good” aspect. However, it does appear that the two are not in any form of opposition.


ESG presents one of the greatest commercial opportunities of our time and the companies that embrace this opportunity fully are positioning themselves for improved chances of financial outperformance.


The ESG market is not all about the new 'disruptor' companies, although they do play an important role, but the well-established companies with significant legacy ESG issues/processes will have the greatest impact.


In some cases, the degree of the proposed change and the targeted timescales for change within these organisations will be critical to their very survival.


How do I go about this type of investing?


You can actively allocate parts of your investments and pensions to be invested into funds that specialise in only backing companies that meet the high ESG standards. As well as avoiding those that fail.


This provides a compelling reason for companies to up their game, because if they fail to meet the standards, they won’t attract investment from funds. Creating a form of feedback loop that enhances the position further.

AGILITY now considers ESG integral to investment portfolio construction and we will (when available) provide the Institutional Shareholder Services ESG fund rating for all equity based funds used within our investment portfolios.

Want to find out more?


Call us on 01494 680848 | Email us at info@agilityfinancial.co.uk


Or simply complete our enquiry form on our contact page


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