Many of us are passionate about doing our bit for the environment and one way we can do that is by choosing investments that back our views. But what does that mean in practice? And what are some of the choices you may need to make along the way?
One common approach is to rely on investment professionals such as financial advisers or fund managers to ‘screen’ investments for you along environmental grounds.
What is screening?
Screening means using a set of rules to either choose companies or sectors for investment that are making a positive difference, or to exclude those that are having a negative impact. You can look for an investment fund with a set of rules for screening that reflects your priorities for the planet.
Rules for negative screening might include, for example, excluding the top 10% of companies for omitting high levels of greenhouse gasses. Rules for positive screening might include companies harnessing renewable energies like solar and wind power, reducing harmful waste through recycling and other related activities or manufacturing environmentally safe products.