Environment, society and governance
The world has changed
In the last 2 years alone, the US investment sector has seen a 90% increase in sustainable investing. The sector was growing beyond expectation even before the pandemic started.
Research found that during lockdown consumers had the opportunity to reflect and re-evaluate their shopping habits. As a result, consumers are paying closer attention to the sustainability of their purchases and the environmental impact associated with their shopping habits. In fact, 37% of UK and Irish shoppers recently said that they are now more conscious of the effect on the environment than before the pandemic.
The pandemic has seen this trend continue, with 73% of customers now expecting online retailers and brands to use recyclable packaging, while 35% of consumers only purchase products which have been naturally, locally or sustainably sourced. Consumers are quickly turning their backs on businesses that prioritise pounds and pennies over planet and people.
With this peak in growth already behind us, should you as an investor still invest in sustainable funds?
Of course this is a decision that you as an investor need to take. One argument in favour is the news that the new American president, Joe Biden, wants his country to return to the Paris climate agreement with immediate effect. The aim of the agreement is to limit global warming. Biden plans to spend $ 2 trillion (over $ 1,500 billion) on renewable energy over the next four years.
Sustainable investing with Hugo
If sustainable funds fit into your overall investment strategy, then there are three ways of investing sustainably with Hugo:
1. You invest yourself. Gather information on sustainable investing opportunities through our platforms and decide when and where to invest.
2. You invest yourself but with our help using our Investment Academy service.
3. You let the experts manage your sustainable investments through our managed portfolios while you enjoy the finer things in life.
You can count on Hugo to provide you with an extensive explanation on the fulfilment of the sustainable portfolio Brown Advisory so you can choose the one that fits your needs.
Invest with peace of mind
Feel good about investing with a portfolio of 30-40 stocks chosen for their ethical merits and potential growth.
Brown Advisory is an industry leader in ethical, social and governance (ESG) investment. Its Ethical Selection portfolio offers you exposure to companies that not only adhere to ESG practices, but embrace them proactively for business success.
Brown Advisory’s award-winning capabilities enable you to invest with peace of mind and conviction, while helping to build a better tomorrow for all.
How sustainable is Hugo?
Hugo is a strong believer of the need to financially educate investors and empower them to gain financial independence. With disappointing pensions and diminishing savings this necessity is increasing. As our need to take control over our own finances grows, so does our need to be financially educated.
On a more personal level, most of Hugo’s team members are vegetarians. Some for as long as 35 years! This is based on ethical grounds and the decision to spare animals and our planet.
On a very local level we are fanatical waste recyclers. We make it a point not to have any plastic water bottles at our Investment Academy and we avoid consuming extra plastic as much as possible.
Sustainability in finance explained
Transforming the management of companies and society.
A united effort for ESG
Companies are always likely to boast about the Environmental, Social and Government goals they are hitting. That’s normal. But, at the same time, there will always be certain ESG goals that they struggle with – some businesses are just better placed to achieve certain targets, and no company can be expected to meet every target alone.
Moving forward, businesses must seek help and work together to achieve their ESG goals.
Want to know more?
Get more indepth information from these sources:
- Comisión Nacional de Mercados y Valores (Spanish)
- International Organization of Securities Commissions
- Podcast Hugo’s Taco te Gussinklo
- Investors Values Podcast
Pitfalls with sustainable investing
- Concentration risk, the risk of downward value of the investment
- Behavioural bias – eg. Loss hurts more than winning does good
- Greenwashing: companies do not simply rely on their publications
- Blind staring at a theme such as solar energy
Tips for sustainable investing
- Spreading in Index Funds or themes
- Spread your inlay
- Mind the costs (added value managed portfolios)
- Check if the asset management policy is sustainable
- Cross reference your own norms and values
- Be critical towards the execution policy of companies
- Be critical with an eye on your own standards and values on policy implementation