Socially Responsible Investing

The notion of investing for more than return is not a new concept, but the way it can be done is evolving.

Historically there were ‘normal investments’ or ‘ethical investments’.

Ethical investing is the practice of selecting investments based on ethical or moral principles. Selecting investments on this basis offers no guarantee of performance.

Ethical investors tend to avoid ‘sin stocks’, those of companies involved with ‘unethical’ activities like gambling, alcohol, smoking or weapons.

Whilst this is widely regarded as morally virtuous, investing in companies already acting ethically does not drive broader change.

It is becoming increasing popular to follow ‘socially responsible investing’ or ‘impact investing’. Although not entirely the same they offer the option to invest more broadly to make positive change.

‘Investments made with the intention to generate positive, measurable social and environmental impacts alongside a financial return’.

Whilst this approach often avoids ‘sin stocks’ it opens the door to trying to promote change within an organisation.

At Parsonage we offer a range of responsible investment portfolio’s and would be delighted to support you in pursuing this approach.

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