ESG Investing

richardsmith911

During this lockdown, it got me thinking of being more conscious of the environment and climate. Maybe I might be looking into this too much, but is it me or has the weather drastically changed in London over the past ten years? This got me thinking, I am getting older now, I need my savings to make me money. I was snooping around and researching for ISAs, in particular stocks and shares ISA. I would like to find a provider that can invest my money in more climate-friendly companies. 

This is where I came across ESG investing and wanted to find out from people who have their funds in this, how are the return and any providers they would suggest to look into? 

Wildsound

Some funds worth looking into:

• Royal London Sustainable
• Liontrust Sustainable Future
  
• BMO Sustainable
  
• L&G Future World
  

There are others out there, others can enlighten you

Alexland

We have our S&S ISAs with L&G this tax year (they were offering attractive topcashback at the time) and noticed their Future World range even includes a couple of Multi Asset funds at a total ongoing charge of 0.66% (no platform fee if investing direct in retail fund classes) which doesn't seem unreasonable as ESG usually costs more. For comparison Nutmeg want a 0.75% plus 0.32% for their ETF managers. Full details and return since inception data is on the L&G website:

https://www.legalandgeneral.com/investments/funds/full-fund-range/future-world/

dunstonh

This is where I came across ESG investing and wanted to find out from people who have their funds in this, how are the return and any providers they would suggest to look into? 

We have noticed an increase in socially responsible investment requests.  Historically, these sorts of portfolios underperform over the long term but the gap has been closing and you can probably get away with doing it now.

 I was snooping around and researching for ISAs, in particular stocks and shares ISA.

All whole of market platforms have access to investments in this area.

Thrugelmir

Impax Environmental Markets (IEM)
Jupiter Green (JGC)

Returns have been good. However ESG being flavour of the month has pushed many underlying asset values to premiums. Cost of renewable energy, for example, is also falling. Resulting in lower revenues. 

richardsmith911

Thanks, guys, regards to L&G future world - this is more greenwashing as it invests into shell? 

Thrugelmir

Shell is at the early stages of transformation. Some of the old oil giants are highly involved in the future. 

IvanOpinion

I am bought into Royal London Sustainable World - picked because it was a mixed asset fund rather than all equities.  However I am currently looking at the Baillie Gifford Positive Change fund

Alexland

richardsmith911 said:

L&G future world - this is more greenwashing as it invests into shell? 

While companies might greenwash their own activities there is no obvious reason for the L&G fund managers to hold Shell in the portfolio other than they believe it meets their ESG investment criteria. It would probably be hard to find any listed company whose activities cannot be demonised in some regard.

AnotherJoe

Fundsmith do a sustainable version of their main fund.

I also hold INRG and TRIG.

thegentleway

I've got RL and Lionturst. I found the ESG ratings on morning star very useful when I was looking for funds. I'm not bothered if they don't perform quite as well in the future, it's more important to me that they are ESG. However, I like to think they will outperform as everyone becomes more conscious of environment and climate.