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Shaping a sustainable future

The imperative of collective action and responsible investment

What we do collectively this decade – including how we invest – could mark the difference between starkly different futures. Our actions now will determine whether we face a future plagued by environmental degradation or one where we have successfully mitigated some of the most pressing ecological concerns.

The urgency of addressing climate change cannot be overstated, but it is not our only challenge. We must also confront the rapid loss of biodiversity, which threatens the natural balance of ecosystems, and the pervasive problem of plastic pollution that chokes our waterways and oceans.

Integrating sustainable practices into our daily lives

Sustainability is not merely a ‘nice to do’ but an indispensable necessity. Integrating sustainable practices into our daily lives and investment decisions is crucial for creating a liveable future. By prioritising sustainability, we help preserve the environment and foster a society that values long-term wellbeing over short-term gains.

This shift in mindset is essential for addressing the complex and interconnected issues we face. Investing in sustainable solutions and companies that adhere to ethical practices can drive positive change, ensuring that our economic activities support the planet rather than deplete it.

Putting sustainability at the heart of your decisions

Our everyday choices are guided by our values and beliefs, whether consciously or not. For example, we’re likely to think twice about buying clothes from a fast-fashion retailer that has been found to exploit its workforce. We rarely know the full story behind the products we buy, but when unethical and unsustainable practices come to light—and they increasingly do—our moral compass kicks in.

Understanding responsible investing

Many terms are used, but responsible investing – or you may know it as sustainable or ESG (Environmental, Social and Governance) investing – is about taking this ‘full story’ into account. It’s essentially asking a wider range of questions about how wisely a company is managed and whether it is acting in harmony with the kind of world we want to live in. This may seem like common sense, but it wasn’t long ago that ESG factors tended to be overlooked compared to financial information, such as a company’s profits and cash flows.

The evolving landscape of ESG factors

But fund managers, regulators and investors are now aware that these factors are just as important in assessing a company’s likely future health. Our investment choices can drive change, influencing how businesses operate and their impact on the world. Aligning personal values with investments can lead to more ethical and sustainable outcomes, benefiting society and the environment.

Aligning your personal values with your investments

Your pension is not just a pot of money you and your employer add to over time. Through our retirement savings, we’re all likely to be shareholders in (and lenders to) companies worldwide. We can choose what types of funds we invest in, and as shareholders, we can influence how companies are managed through the providers and fund managers who look after our pension savings.

The concept of stewardship

This is often referred to as ‘stewardship’ and can be practised by any fund, whether it has a sustainability label or not. Some funds go a step further and explicitly target positive environmental and social impacts alongside financial returns. These investments aim not only to generate profits but also to benefit society and the environment.

Questions to consider when reviewing your investments

Most pension savers are invested in a scheme default fund – the fund that is automatically selected for you if you don’t make an active choice yourself. Increasingly, default funds consider ESG factors, but they may do this differently. For example, they may exclude certain types of companies from investment – such as those involved in tobacco production, controversial weapons or thermal coal extraction.

Evaluating your pension fund

They may also increase or decrease the weighting (the percentage invested) in companies based on a specific factor, such as carbon emissions or ESG scores. A small amount of research – simply logging into your pension account and looking at the factsheets for the funds you’re invested in – will help you understand whether they align with your values and preferences.

Investing your money in a more purposeful way for societal good

It’s about asking questions: What is my pension fund doing to include sustainability considerations? Are the underlying investments in my portfolio aligned with my values? If they’re not, is my fund manager voting and engaging to nudge misaligned companies in the right direction? Or are there more suitable funds for me?

Making a difference for the benefit of people and the planet

We’re all looking for ways to help make a difference for the benefit of people and the planet. While taking the more obvious actions such as recycling and taking public transport is important, ensuring that our pensions are invested sustainably and aligned with our personal values could also positively influence our world. Navigating different responsible investment approaches and funds isn’t easy, so obtaining professional financial advice is important to discuss which investments are right for you.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.

THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.

Adam Reeves

Author: Adam Reeves

DipPFS Cert CII (MP&ER)
Independent Financial Planner, Wealth Manager, Director

Last updated on

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Adam was quick to assess & understand my situation, and was able to discuss & communicate in a very concise and simple way the various options available to me, taking time for me to understand and clarify where necessary. My understanding & knowledge of taxation & pensions has increased significantly allowing me to feel much happier making financial decisions for the future.

Rob – West Sussex

Adam and his team undertook in-depth research into our existing QROPS schemes and clearly set out both pros and cons of transferring the funds back to the UK. Having decided to go ahead with the transfer, Adam and his team worked extremely hard to facilitate the transfer. The QROPS pension trustees were not always the most professional or responsive organisation – however we were very grateful for the perseverance and commitment that Adam showed us as clients.

Jonathan – East Sussex

Adam offered a range of financial products , the one he suggested was affordable and proved to be a good choice.  Returns on investments have exceeded my expectations, based on Adam’s advice and guidance. Profits have enabled house improvements to take place.

David - Surrey

Adam arranged an appointment very timely, he explained his role and qualifications as an IFA giving me reassurance , we went through my retirement and investment goals. Adam discussed my options explaining in great detail, I felt relaxed during our discussions allowing me to fully understand my choices. I feel very confident in the financial advice allowing me to enjoy my retirement.

I was very happy with Adam’s recommendations and explanations of financial products which would suit my retirement goals, I feel this has helped me review and reduce my financial risk as I reach retirement, leaving me feeling confident that I can enjoy my retirement plans.

Ron – West Sussex

After initial meeting Adam put together a very detailed and thorough written plan. At our second meeting he went through the whole booklet and explained everything in layman’s terms which made it a lot easier to understand.

I am very happy with everything that was suggested and put in place especially with something as big and important as pensions. Adam and his team have taken a huge weight off my shoulders and I would highly recommend their services to anyone needing help with their financial planning and pension.  Adam couldn’t have been more helpful, and even came outside his normal area to meet me on a number of occasions.

Richard - Kent

Unfortunately I had to claim on my critical illness insurance due to my wife being ill and because of the sound advice Adam gave in acquiring this insurance we ended up being financially safe through a tough time.

Steve - Kent

Adam did a review of our financial situation, confirmed that Flexible Drawdown best suited our needs as a family, and then did all the research into the best product for us. He will continue to monitor it for me. He acted extremely promptly because we had a deadline for requiring the lump sum; went out of his way arranging meetings during non-office hours, was professional yet friendly and explained a difficult subject very well.

Clare – East Sussex

Adam did a thorough review of my pension policies, clearly explained how well they had performed, how flexible they were, how the market regulation has changed, and, crucially, what the tax implications would be if I were to leave them untouched. He accurately assessed my attitude to risk and recommended an up-to-date solution that will offer me the greatest flexibility at retirement.

Greg – East Sussex
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