How Positive Pennine avoid harm in the Positive Pennine portfolios
Do you know where your savings, investments and pensions are invested?
Chances are, if you were to take a close look, you may find that they are invested in companies from sectors such as oil, mining, gambling and armaments. The largest companies within the FTSE 100, or the ‘news at ten index’ all invest in these themes. Given the choice, these may not be the sort of companies that you would like your money to support.
What we Monitor
To ensure that your money isn’t invested in companies that cause harm to others or the planet, we check funds through 3D Investing to identify any exposure to ethical controversies. This includes flagging up any poor practices in the way that companies operate. A comprehensive range of issues is monitored, such as:
Animal testing
Alcohol manufacture and sale
Gambling
Tobacco
Intensive framing
Human rights abuses
Armaments sales
Mining
Fossil Fuels
Tropical deforestation
Tax avoidance
Investment and lending in controversial business areas
Consumption of non-renewable resources
Poor working practices and conditions in the supply chain
Compromise is always involved when constructing a balanced investment portfolio, but we make the extent of any compromises clear so that you can make informed decisions.
Our Investment Strategies
Positive Pennine also use investment strategies that have climate change policies at their core. This is done by investing in funds that hold companies that actively provide environmental solutions such as clean energy, energy efficiency, sustainable agriculture and low carbon transport.
One of the investment themes is the circular economy; an alternative to a linear one which employs a model of take, make, dispose. A circular economy works on the principal of reduce, reuse, recycle. Companies that adopt this operational model, not only benefit the planet, but also save money and ensure that businesses are financially sustainable as the pressure on resources grows.
Positive Pennine research funds that are investing in these new technologies and incorporate them into the investment approach, which not only helps solve some of our planet’s issues, but provides an investment return in line with the more traditional investment models. Clearly a win-win.
Clean Energy
Another key area is the clean energy market. Once deemed to be inefficient and expensive, the availability of companies who provide up to 100% clean or renewable energy in the UK has increased. According to Carbon Brief, In the third quarter of 2019, the UK’s windfarms, solar panels, biomass and hydro plants generated more electricity than the combined output from power stations fired by coal, oil and gas. The good news is that this clean energy is becoming far cheaper, especially solar, with the cost having more than halved in recent years.
All these themes and investment opportunities allow Positive Pennine to invest in new technologies. These technologies provide benefits for the planet while providing our investors with a sustainable investment proposition which meets their financial expectations.
For more information about how sustainable investments perform click here.