Investments  

Guide to ethical investing

  • Describe the importance of ESG investing
  • Identify what makes an ESG investment
  • Describe how to make the right ESG investment
CPD
Approx.60min
Guide to ethical investing

Introduction

Ethical investing has suddenly been thrust into the mainstream.

From what was originally a niche, marginal area of investing, it has now become the investment theme du jour.

There are several reasons for this. The issue of climate change has become much more obvious with many more extreme weather events happening globally, but noticeably in North America and western Europe.

There are also campaigners such as Greta Thunberg and Extinction Rebellion who are capturing the headlines and making people in general wake up to the realities of climate change.

And there is pressure from regulators around the world for investment houses to take sustainability seriously.

But whether it is simply due to external pressure or an internal drive, many institutions are realising that regardless of lack of action from government, they want to invest in companies that are going to be around in the long term.

Now that climate change seems to be a real thing, fund managers are looking for firms that have a sustainable plan for the long term.

There are many ways of defining ethical investing, either negative screening, positive screening, or companies that have a positive impact.

But however an investor wants to define it, returns are much more positive than they used to be, and ethical investing has become an element to look for the long term.

This guide is worth an indicative 60 minutes of CPD

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which of the following is NOT a factor that is likely to continue debate into ethical investing:

  2. How much did the three top performing ESG funds increase by over a 12-month period?

  3. What is impact investing?

  4. What is the Financial Conduct Authority doing regarding ethical investing?

  5. The Pensions Regulator does not see climate change as a risk, true or false?

  6. Which of the following is NOT factor financial advisers should look for when selecting a fund?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe the importance of ESG investing
  • Identify what makes an ESG investment
  • Describe how to make the right ESG investment

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Investments CPDSee my completed CPDSee all CPD