Crystal Wealth Newsroom
The background of responsible and ethical investments
All businesses, and therefore all investments, have an impact on people and the planet. Responsible and ethical investments seek to minimise the negative effects generated by business and promote positive impacts. In short, responsible and ethical investments ultimately deliver a healthier economy, society and environment – and, of course, a robust investment outcome.
A responsible and ethical investment portfolio was previously achieved by avoiding investing in companies that engage in environmentally and socially irresponsible practices or display poor corporate behaviour. However at Crystal Wealth Partners we believe it should be a combination of negative screening, sustainability-themed investing, ESG integration and, where suitable, impact investing as we believe they all play a part in responsible portfolio construction.
With a global shift towards thinking and acting more sustainably, there has been a similarly increasing desire across the investment world for incorporating the concept of responsible and ethical investments into the standard investment processes. According to the Australian Bureau of Statistics (ABS), the market for responsible investment portfolios in 2020 is estimated to represent 44% of professionally managed funds, up from 13% the previous year (2019).
By selecting managed funds with low carbon designations and individual companies with minimal exposure to fossil fuels, your investments can help mitigate the impact of climate change as economies transition to low-carbon consumption.
If you wish to find out more about how you can start a responsible and ethical investment portfolio, get in touch with one of our advisors on the ‘contact us’ page.