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Building a sustainable portfolio

There are lots of options for sustainable investors but navigating the landscape is tricky
Building a sustainable portfolio

More and more people want to put their money with companies that are doing the right thing for the environment and for society. This is clear by the floods of money rushing into funds managed with environmental, social and governance (ESG) factors impacting investment decisions.

But the tricky thing is that there’s no one correct way to invest sustainably - it comes down to personal preference. 

 

Some people choose to avoid investing in any company that falls short on specific ‘environmental, social and governance’ (ESG) measures. Some opt to exclude certain sectors all together, such as those in the business of producing fossil fuels. 

Others take the view it is better to invest and engage with companies as responsible owners - if you don’t own the company someone else will, and they might be less conscientious. 

Once you’ve decided what approach you’d like to take, you then have to navigate the minefield of reporting standards - this is a fast evolving area. Download the seventh guide in our investing explained series for help on how to do this. 

 

This guide includes:

  • What is sustainable investing?
  • Metric minefield 
  • Different sustainable investing strategies
  • Is sustainability a performance driver?

 

Or listen to our podcast, where Amy Lazenby, investment director at Close Brothers talks through what sustainable investing is, the different approaches you can take and how to do your due diligence to ensure your standards are met. 

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This article is sponsored by IG.