Your investments are our first priority
But we’re also conscious about their impact on the world we live in. That’s why the shares and funds the Personal Portfolio Funds invest in are responsible investments – and they have been since 2016.
By embracing responsible investing, you help the planet and could help your long-term returns, too.
That's why at the start of the year we committed to reducing the carbon footprint (carbon emissions) of our funds:
- By 25% by the end of 2021 (on equity holdings)
- By 50% by the end of 2030 (on all holdings)
What is responsible investing?
It’s an investment approach that Coutts, the investment manager for the Personal Portfolio Funds, uses for all the shares and funds they select.
Responsible investing focuses on companies and industries who positively affect our world in three key areas: environmental, social, and governance (ESG):
Why ESG factors are important for investments
These factors are not based on moralistic beliefs, they make good financial sense.
That’s because there’s a strong link between stock price performance, and companies who have good corporate practices.
Environmental, social, and governance (ESG) factors are also important drivers in the creation of long-term shareholder value. They should deliver better and more sustainable outcomes for society.
Does responsible investing affect returns?
Market data tells us that by being a responsible investor, you could potentially reduce your downside risk and see a positive impact on your returns.
Whenever there is a market shock, for example, statistics show that those invested in products that consider environmental, social and governance (ESG) factors have lost less money – and over the long term, have made more.
Of course, while these statistics are interesting to see, historical performance cannot be taken as an indicator of future performance and cannot be relied on. The value of investments can go down as well as up, your capital is at risk. Eligibility criteria, fees and charges apply.
By understanding ESG risks, you could see a positive impact on your returns. Here are some examples:
Enviromental factors OpenClose
Social factors OpenClose
Governance factors OpenClose
How reponsible investing is part of our DNA
As a bank, we want to be climate positive by 2025 – so you can see that we take the environment as seriously as we take responsible investing.
Now, we’ve already made big changes – including significantly reducing energy consumption in our branches, and sourcing 100% of branch electricity from renewable sources – but we need to go further.
What's in it for you?
A little peace of mind, knowing that you have invested in funds that care and the reassurance that your financial returns today don't negatively impact the environment and society over the longer term.
You’ll also have an investment manager that considers all the possible factors available – to help give you the best chance of securing your financial future.