Evidence suggests that environmentally focused investing is becoming mainstream
Environmentalists cheered by huge improvements in air quality during the lockdown – and the collapse in coal power generation – have another reason to celebrate. Even the stock market has gone in their favour.
A detailed number-crunching of environmentally sustainable funds has revealed that they have outperformed traditional funds across the board – beating them during the pandemic as well as during the 10 years up to and including the coronavirus sell-off.
The outperformance continued during the coronavirus crisis
Research what funds your pension/Isa/investment provider offers you.
Look into the holdings and stewardship/investment policies of your funds, or those you are considering putting money in. These policies show how your asset manager will invest your money and try to influence companies on your behalf. You can either do this on your own or ask your investment (or pension) provider/employer/financial adviser for this information.
It is important to see how your investment provider votes at the world’s largest companies’ AGMs. Are they voting for climate action and supporting human rights?
ShareAction recently produced an independent global ranking of the most responsible asset managers across many topics. Use it to make an informed decision when selecting a manager.