Stepping up to Ethical Investing
Ensure your investments improve our society and the planet.
Cascade Financial
With ethical investment, you can be assured that your money is being invested wisely and that your superannuation and other investments are improving our society and planet.
You are conscious of the impact you can make and we want you to feel proud that you are making a practical contribution to humanity and the environment, knowing that you’re dealing with a specialist ethical advisory team who shares your values and concerns.
For many years, personal investors have been able to ‘pivot’ their individual investment strategy towards those companies that observe clearly defined behavioral guidelines in the ethical, socially responsible, and sustainable investing space.
Ensure your investments improve our society and the planet.
Cascade Financial
With ethical investment, you can be assured that your money is being invested wisely and that your superannuation and other investments are improving our society and planet.
You are conscious of the impact you can make and we want you to feel proud that you are making a practical contribution to humanity and the environment, knowing that you’re dealing with a specialist ethical advisory team who shares your values and concerns.
For many years, personal investors have been able to ‘pivot’ their individual investment strategy towards those companies that observe clearly defined behavioral guidelines in the ethical, socially responsible, and sustainable investing space.
Investment categories
Ethical Investing
Companies and sectors are negatively screened and not included in portfolios if they make or sell certain products. Positive screening can also be part of the process.
Socially Responsible Investing
Companies are generally screened out if they take part in excluded activities, but may be included if their commitment to social responsibility outweighs the negative aspects.
Sustainable Investing
Investments are chosen on the basis of how well a company manages environmental, social and corporate governance factors, not on what the company makes or sells.
Good investors have long known that there is more that drives investment returns than just what is reported in financial reports.
Responsible investors understand that companies or assets won’t thrive if the world around them is not thriving.
In formal terms, responsible investment is a process that takes into account environmental, social, governance (ESG) and ethical issues into the investment process of research, analysis, selection and monitoring of investments.
There is a broad array of methods that responsible investors use to manage these non-financial risks – from excluding companies involved in controversial industries, to supporting the most sustainable companies, to a sharp focus on ESG risks, and using ownership to engage with companies.
This diversity of approach is a plus for you as a client who can find an option that matches your own values, concerns, risk profile and life stage.
So who decides what is ethical?
If you’re considering ethical investment, look for a fund that’s a member of the Responsible Investment Association Australasia (RIAA). This peak body created a certification program in partnership with the NSW Department of Environment and Conservation and the Victorian Government in 2005, with a view to making uniform standards of disclosure for funds. In order to qualify, fund managers must make a convincing case to the RIAA that they have a specific methodology in place to weed out unethical behavior – the process is then independently verified.
Responsible and Ethical Investment Spectrum
RIAA’s Responsible and Ethical Investment Spectrum maps out the various approaches to responsible investing, their similarities, differences and areas of focus.
Please note that this Spectrum is only intended as a guide to understanding different responsible investment approaches and their features and that the boundaries defining each strategy are not set in stone, open to varying definitions, interpretations and executions.
Environmental, Social and Governance (ESG) Issues
Environmental, social and governance (ESG) issues are some of the most important drivers of change in the world today. And these are not just societal issues; they are important economic issues with significant implications for businesses and investors.
Think it over. Maybe it’s the time to give your current investment portfolio a once over and we are here to help.
