Wood cube block Esg Environmental Social and Governance concept of ethical and SRI investing

> The Power of Ethical & SRI Investing

Investing according to ethical or environmental, social and governance criteria can have a profound effect on the long-term performance of companies.

When we buy company shares directly from a firm, we supply the firm with financing, and this helps the firm compete and grow.

When we buy the shares of a company on the stock market, we help increase their value. This in turn makes it easier for them to acquire cost effective financing (loans, debt financing etc.) and compete and grow.

Therefore, through our investments we can support those companies we want to do well from an ethical perspective. This is regardless of whether we invest within our pensions, ISAs, investment bonds or other types of investment accounts.

In addition, if we invest through ethical mutual funds, the fund managers typically vote on company decisions when shareholders are permitted to (shareholder and management resolutions) in a manner that represents the ethics of the people who have invested in the fund. Practically, this means that by investing in an ethical mutual fund you can empower ethical shareholder voting and change the behaviour of firms through this mechanism.

Therefore, investing in an ethical manner can support those firms doing good, take support away from those doing bad and help shape the behaviour of all firms.


If you would like to find out more about ethical investing, please call us on 0117 923 7652 or alternatively email us at enquiries@churchillethicalinvestment.com.

When investing your capital is at risk.