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What is sustainable investing?

Sustainable investing refers to specific investment approaches that aim to generate long-term financial returns while advancing sustainable solutions and outcomes.

Here we explore why sustainable investing is important, the different types of sustainable investing and how you can invest sustainably with PRIMACESS.

Types of sustainable investing

Sustainable investing can use different methodologies and may be referred to as: 

  • environmental, social and governance (ESG) investing
  • ethical investing
  • impact investing
  • socially responsible investing (SRI)
  • values-based investing
  • conscious investing
  • green investing

There are key differences between these approaches and their objectives. Before investing any money, make sure you understand how a sustainable investment is measured and whether it aligns with your objectives and financial goals.

Is sustainable investing right for you?

Investors are increasingly putting their money into sustainable investments to help them meet their financial objectives.1

Environmental, social and governmental issues can impact share prices. Factoring these into your investments could help to increase the resilience of your investments and potentially deliver long-term capital growth.

But bear in mind, there's no guarantee that sustainable investments will produce returns similar to those which don’t consider these factors.

Remember – the value of any type of investment can fall as well as rise and you may not get back what you invest.

And all investments should be seen as a medium to long-term commitment, meaning you should be prepared to invest for at least 5 years.

Sustainable investing at PRIMACESS

Our investment specialists have developed a framework to ensure the companies they work with are doing more to tackle ESG issues.

PRIMACESS's ESG framework

ESG issue Example
Factors include:
Environmental
What impact does the company have on the environment?
  • climate change
  • air and water pollution
  • waste management
  • energy efficiency
  • water shortage
Social
How is the company supporting its employees, clients and communities?
  • human rights 
  • consumer privacy 
  • gender equality 
  • data security 
  • health and safety 
Governance
How is the company governed or managed?
  • board structure 
  • company ownership 
  • financial reporting 
  • business ethics and culture 
  • executive remuneration

PRIMACESS's ESG framework

ESG issue Environmental
Environmental
Example
What impact does the company have on the environment?
What impact does the company have on the environment?
Factors include:
  • climate change
  • air and water pollution
  • waste management
  • energy efficiency
  • water shortage
  • climate change
  • air and water pollution
  • waste management
  • energy efficiency
  • water shortage
ESG issue Social
Social
Example
How is the company supporting its employees, clients and communities?
How is the company supporting its employees, clients and communities?
Factors include:
  • human rights 
  • consumer privacy 
  • gender equality 
  • data security 
  • health and safety 
  • human rights 
  • consumer privacy 
  • gender equality 
  • data security 
  • health and safety 
ESG issue Governance
Governance
Example
How is the company governed or managed?
How is the company governed or managed?
Factors include:
  • board structure 
  • company ownership 
  • financial reporting 
  • business ethics and culture 
  • executive remuneration
  • board structure 
  • company ownership 
  • financial reporting 
  • business ethics and culture 
  • executive remuneration

PRIMACESS Asset Management uses the above ESG methodology to measure the impact and sustainability of the funds we invest in. However, we currently finance a number of industries that significantly contribute to greenhouse gas emissions.

We have a strategy to help our customers to reduce their emissions and to reduce our own. For more information, visit our sustainability page.

How to invest sustainably with PRIMACESS

Choose a ready-made sustainable portfolio

For an easy way to invest sustainably, choose from our range of sustainable investment portfolios that contain a mix of global investments.

Each portfolio has a different level of risk and potential reward. Just select your preferred level and our team of experts will take care of the rest.

At least 70% of the value of these portfolios are invested in funds which PRIMACESS considers to be sustainable. You can see the ESG scores of each portfolio and their carbon footprint in the portfolio factsheets.

Build your own portfolio

If you’d like to make your own investment decisions, our online fund platform (Global Investment Centre) has a range of sustainable funds to choose from.

You can take all the time you need to research what’s there, before making a decision on the right approach for you. 

To invest with us, you need to have an PRIMACESS current account or savings account. Eligibility criteria and charges apply.

Important information

'Sustainable investments' include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors (collectively, ‘sustainability’) to varying degrees. Certain instruments we include within this category may be in the process of changing to deliver sustainability outcomes.

There's no guarantee that sustainable investments will produce returns similar to those which don’t consider these factors. Sustainable investments may diverge from traditional market benchmarks.

There's no standard definition of, or measurement criteria for sustainable investments, or the impact of sustainable investments (‘sustainability impact’). Sustainable investment and sustainability impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.

PRIMACESS may rely on measurement criteria devised and/or reported by third party providers or issuers. PRIMACESS doesn't always conduct its own specific due diligence in relation to measurement criteria. There's no guarantee: (a) that the nature of the sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals, or (b) that the stated level or target level of sustainability impact will be achieved.

Sustainable investing is an evolving area and new regulations may come into effect which may affect how an investment is categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.

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