Investing For Good
At F+T we believe that responsible investing is the future. Through our diverse range of sustainable investment solutions, we incorporate Environmental, Social and Governance (ESG) concerns into our investment decisions, with the goal of improving the world.
Our ESG-integrated portfolios are grounded in academic research, while pursuing positive social and environmental change.
We don’t believe in growth at any cost, we believe in using collective financial power to try and improve the world.
Our investment strategies aim to influence companies to improve their environmental record, their equality and diversity, and their governance.
Our responsible investments avoid companies that have negative social effects (like alcohol, tobacco, gambling, pornography, weapons and the military). In response to the climate crisis, we favour companies that positively impact the environment (by reducing emissions or shifting to renewable energy like solar panels and wind farms) over industries which produce fossil fuels (like coal and oil mining).
What ESG Investing stands for:
Environmental Issues
How companies interact with the environment
Social Issues
How companies interact with their communities
Governance Issues
How companies conduct their business activities
Our goal with ESG investing is to earn a financial return for investors using these criteria:
Impact investing
Funds companies that focus on addressing social and environmental issues.
Inclusion-based investing
Funds companies that exceed certain ESG criteria.
Exclusion-based investing
Screens out companies that do not meet specific ESG criteria or have a negative ESG impact.
ESG Integration
Includes environmental, social and governance concerns in a predefined investment strategy (like an evidence based portfolio).
What does ESG Cover?
Environmental
• Air & Water Pollution
• Biodiversity & Deforestation
• Climate Change
• Energy Efficiency
• Waste Management
• Water Scarcity
Producing more output with less natural resources, energy, water, waste and pollution.
Social
• Community Relations
• Customer Satisfaction
• Employee Engagement
• Gender & Diversity
• Human Rights
• Labour Standards
Improving relations with key stakeholders: employees, customers, suppliers.
Governance
Audit Committee Structure
• Board Composition
• Bribery & Corruption
• Executive Compensation
• Lobbying Activities
• Political Contributions
Reducing risk through board oversight and risk controls.
The United Nations’ Sustainable Development Goals
The UN has created the following 17 Sustainable Development Goals (SDGs), “as a blueprint for shared prosperity in a sustainable world – a world where people can live productive, vibrant and peaceful lives on a healthy planet”. These 17 Sustainable Development Goals are often used to signpost the positive impacts intended by an investment, and sometimes to show the results too:
A variety of research has shown that it’s not principles over performance
Scholars and investors have published more than 2,000 empirical studies and several review studies on this relationship since the 1970s. The findings of these studies contradict the common perception of many investors that implementing ESG policies reduces performance, and in fact, suggests there is a positive relation between ESG and returns.
Investment Risks
Investments carry risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. There is no guarantee that Socially Responsible investing provides greater returns.
F+T and Ecologi
With all this in mind, F+T has signed up to the environmental organisation Ecologi. Ecologi is a platform for real climate action. They facilitate the funding of carbon offset projects and tree planting around the world. Their mission is to reduce 50% of global CO2 emissions by 2040 and responsibly plant billions of trees every year. F+T have answered their call to as a business take personal responsibility and help tackle the biggest threat of our generation. As Ecologi put it, collectively, with a little input from a lot of people, we have the power to secure our future.