If you’re a big fan of Greta, you can even have a car­bon-free Isa!

The Scottish Mail on Sunday - - 16-page Isa Guide - By Rosie Mur­ray-West

SU­PER­MOD­ELS may have a tar­get of be­ing size zero – now, in­creas­ingly a big ambition of cor­po­rate chiefs is to see their com­pany be­come net zero.

This is a po­si­tion where your car­bon diox­ide emis­sions and the amount of green­house gas you are tak­ing out bal­ance out to noth­ing.

With big busi­nesses such as BP, Unilever and Nestle com­mit­ting to be­ing net zero by 2050, it is worth ex­am­in­ing whether, as an in­vestor, you can ben­e­fit from mak­ing sim­i­lar com­mit­ments with your own Isa port­fo­lio. Lisa Stan­ley, co-founder of sus­tain­able money web­site Good With Money, says de­car­bon­is­ing your Isa port­fo­lio is no longer a strat­egy for the few. She says: ‘With grow­ing ev­i­dence show­ing re­turns from in­vest­ing sus­tain­ably are as good if not bet­ter than more car­bon-heavy coun­ter­parts, there’s lit­tle rea­son not to go down this route.’

Those with con­ven­tional in­vest­ment port­fo­lios may strug­gle to work out how to de­car­bonise an Isa port­fo­lio. As well as the dif

fi­culty of find­ing pre­cise data on the car­bon im­pact of in­di­vid­ual busi­nesses, in­vestors face the prob­lem of sort­ing the truly ‘green’ options from the merely cos­metic.

Ja­son Hol­lands, a di­rec­tor of wealth man­ager Til­ney, says some funds that claim to con­sider en­vi­ron­men­tal, so­cial and gover­nance (ESG) fac­tors in their choice of in­vest­ments, con­duct no more than ‘tick box ex­er­cises based on dis­clo­sures in glossy com­pany re­ports’.

Oth­ers say there are in­vest­ment funds with a gen­uinely sus­tain­able fo­cus. Hol­lands sug­gests Wheb Sustainabi­lity, say­ing: ‘Wheb As­set Man­age­ment is a small bou­tique group fo­cused on sus­tain­able in­vest­ing and so this fund isn’t just one of many funds run by a large busi­ness. It’s what they live and breathe.’

Dar­ius Mc­Der­mott, manag­ing di­rec­tor of Chelsea Fi­nan­cial Ser­vices, rec­om­mends In­vestec Global En­vi­ron­men­tal – a fund ‘that specif­i­cally in­vests in com­pa­nies that are help­ing to de­car­bonise the global econ­omy’.

He also likes Janus Hen­der­son UK Prop­erty. He says: ‘It has just com­mit­ted to be car­bon neu­tral by 2030. The man­agers and team are work­ing with prop­er­ties to re­duce wa­ter waste, make light­ing and heat­ing more ef­fi­cient and use more re­new­able en­er­gies.’

For those who pre­fer not to choose their own funds, Good With Money’s Stan­ley sug­gests us­ing in­vest­ment plat­forms that can help you put to­gether an ESG-friendly port­fo­lio. They in­clude In­ter­ac­tive In­vestor, Nut­meg and The Share Cen­tre (see above) as well as EQ In­vestors and Ethex.

Even af­ter pick­ing more sus­tain­able funds, you may not have en­tirely de­car­bonised your in­vest­ments. ‘We all have a car­bon foot­print, so it’s a big ask of any Isa to be com­pletely car­bon neu­tral,’ says Re­becca O’Keefe, head of in­vest­ment at In­ter­ac­tive In­vestor. ‘Even watch­ing telly has a car­bon foot­print – due to the power con­sump­tion of the equip­ment.’

De­car­bon­is­ing is a bal­anc­ing act, so try adding in some pos­i­tive en­vi­ron­men­tal in­vest­ments to bring your score down. Off­set­ting options for the brave in­clude In­no­va­tive Fi­nance Isas with a spe­cific en­vi­ron­men­tal fo­cus. Stan­ley likes Thrive Re­new­ables which op­er­ates en­ergy projects across the UK, and En­er­gise Africa which in­vests in so­lar en­ergy projects. Th­ese

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.