We know many of you have asked us about investing ethically through Chip.
We're delighted to bring you funds committed to operating in a way that is sustainable for the future. In this article, we'll take a further look at what this means and how you can invest in the things that matter to you.
Please note: Chip can't provide financial advice so you may want to seek guidance from a qualified professional if you are unsure or have detailed questions about investing. Your capital is at risk
So what are ethical funds? Ethical funds will look to only purchase shares or bonds from companies designated as being socially, environmentally and morally responsible and avoid organisations and sectors that have a negative impact on the planet and don’t align with the values of the individual choosing to invest.
These funds will be geared towards the advancement of “positive ESG characteristics” with the potential for worthwhile environmental and social outcomes. e.g. a fund investing in clean energy technology. Environmental, Social, and Governance refers to the three key factors in measuring the sustainability and societal impact of an investment in a company or business.
Factors taken into consideration when applying ESG characteristics include the contribution a company makes to climate change through carbon emissions, human rights and labour standards and if a corporation is being run in the right way.
Three of our funds are guided by these principles with assets within this fund required to meet ESG-related criteria.
Ethical Fund (actively managed):
Risk rating: 5/7
Official name: MyMap 5 Select ESG Fund
Clean Energy ETF:
Risk rating: 6/7
Official name: iShares Global Clean Energy UCITS ETF
UK Large & Mid Cap ETF:
Risk rating: 6/7
Official name:L &G UK Equity UCITS ETF
It's important to note sustainable, or ESG-focused investing carries risks like any other investments, yet emerging trends show that investors can take a sustainable approach while pursuing traditional financial goals.
