Wealth management firm launches sustainable investment partnership
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Nottingham-headquartered wealth management and financial advice firms, The RU Group, has entered into a partnership with EBI Portfolios to expand its access to ESG (environmental, social and governance) investments.
The firm says that socially conscious or sustainable investing is a growing trend within wealth management and financial advice.
Ian Browne, head of advice at The RU Group, said: “We are finding that more and more of our clients want to be able to express their values and personal convictions through their savings and investment choices. We therefore wanted to expand our service offering in this area to offer our clients increased choice in this area.”
Using environmental, social and governance criteria, investment opportunities are assessed against their impact on the wider world. Environmental criteria includes things such as animal welfare, pollution and waste prevention, potential risks posed through emissions and compliance with legislation or regulation.
Social elements take into account employee health and welfare, community and charity contributions, relationships with stakeholders, ethics and values, while governance looks at transparency and accuracy in accounting, adherence to relevant code of practice and industry standards.
Browne added: “Assessing ESG criteria to analyse and evaluate investment opportunities is an increasingly popular way to determine how and where investments are made. In partnership with EBI we are able to provide Earth Portfolios which give investors the opportunity to combine a passion for ethical behaviour with positive financial returns.”
According to a 2019 report from Allianz, 90% of investors care about at least one ESG issue, 81% of investors like the idea of aligning their values and investments and 66% of investors have a positive impression of ESG once it is explained to them.
EBI Portfolios is a signatory of the United Nations Global Compact and currently has in excess of £1.6bn invested in its portfolios and over 200 advisers in its network.
Craig Burgess, CEO of EBI Portfolios said: “Sustainable investing is a fast growing area. The Global Sustainable Investment Alliance reports that more than $30 trillion was managed according to responsible investment criteria worldwide. Every £1 million invested in our Earth portfolios translates to a reduction in greenhouse gas emissions equivalent to charging 12.7 million smartphones.
“We are privileged to be working with a high calibre partner such as the RU Group to expand its offering to its clients, while providing significant environmental and social value and encouraging best practice.”