Investment changes spark ‘radical break away’ when it comes to retirement savings

Pensions: Make My Money Matter promote ethical investing

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However, despite 53 percent of people saying they weren’t aware of the control they have over their savings, 45 percent indicated interest in ethical investing.

Following from this, a “radical break away from the idea that a person’s investments are beyond their control”, has been predicted by George Critchley, founder and chairman of TBCFP.

Ethical investing has become more prominent in recent years, especially as the climate crisis looms greater with each passing day.

Investors often talk of ESG investing. This stands for Environmental, Social and Governance and describes investments which prioritise environmental and social governance practises.

There are currently more than 80 sustainable and green options available in the UK.

Mr Critchley added: “For many people, their retirement savings represent the largest sum of money they will be looking to invest and grow during their lifetime.

“Following recent changes, people are now in the position to request that their pensions, investments and ISAs are invested ethically.”

The data produced by TBCFP suggested that as many as 24 million UK adults haven’t considered ESG investment options.

However, Mr Critchley indicated that the number of investors considering ESG options is on an upward trajectory after being on the rise over the past three years.

“There is still more work to be done before ESG funds become the main form of investment”, he said.

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Mr Critchley continued: “It is only a matter of time before the public conscious turns its eye to exactly how funds are being invested and the impact they can have on the world at large.

He said it is little different from people making lifestyle choices with a view to their wider consequences.

For example, more people are choosing to drive electric cars, eat sustainable food and buy renewable energy.

Stressing the importance of ethical investing, Mr Critchley urged now it can take just a few clicks to ensure that their funds can demonstrate measurable social benefit.

For him, Governments have been slow on the draw in realising the appetite for ESG investing.

“This is one of the major reasons so many people are unaware of the positive impact their investments can have,” he said.

“Luckily, the private investment sector has moved more quickly than anticipated.”

Beyond the positive impact of these investments, there is another big reason to consider this form of investing.

ESG funds have actually outperformed sector averages consistently over the past five years.

TBCFP has invested over £30million in a variety of impact, sustainable and ethical investment solutions for its clients.

When considering ESG investments, there will be many factors.

Environmental considerations will include a business’s attitude to waste, pollution, greenhouse gas emissions , deforestation and climate change to name a few.

Social criteria will factor in how the company treats its employees, diversity, work conditions, health & safety and if they may have mis-sold products in the past.

Finally, governance scores are based on the governance of a company. For example, how much senior executives are paid compared to others, tax practices, corruption & bribery and board diversity.

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