Investors wait for clean bill of health on green funds
WHILE growing numbers would like to invest in clean and green funds, many do not know where to start.
They fear that investment funds describing themselves as ethical or sustainable are “greenwashing”, and do little good in practice.
This is Good Money Week and research from Triodos Bank UK shows that eight in 10 private investors want greater transparency to see if green funds are truly ethical.
Scepticism is growing as a quarter of investors question whether green funds are truly ethical, up more than half in a year.
Triodos head of retail banking Gareth Griffiths called on fund managers to draw clear lines and boundaries on what is sustainable in key areas such as fossil fuels, arms, food and farming. “With many different investments labelled as ‘ethical’ or ‘sustainable’, it can be difficult to sift through the greenwash,” he said.
Melissa Scaramellini, ESG fund research lead at Quilter Cheviot, tips three funds that have a solid track record of promoting sustainability.
Legal and General Future World names and shames companies to highlight both those that are taking action and those that fail to act.
BMO Global Responsible Equity seeks to avoid companies that have damaging or unsustainable business practices, Scaramellini said. “It favours companies that make a positive contribution to society and the environment.”
Her third tip, Regnan Global Equity Impact Solutions, invests in “mission-driven” global companies. Scaramellini added: “By considering how your savings and pension are invested, you can help support the transition to a sustainable economy.”