Sustainable & Ethical Investments

Firstly, what do we mean when we say sustainable and ethical investments?

Not all sustainable and ethical investments are made equal and it is important to understand the differences.

Whilst the different types of sustainable strategies aim to provide financial returns, how they do so can differ greatly.

There are different ways in which you can align investments to your values and beliefs.

So what’s the difference and what do we do at BlueSphere?

Let’s take a look.


Ethical, ESG & Impact Investing

Ethical Investing

Removing Controversy

Ethical investing ‘negatively screens out’ (removes) controversial industries such as fossil fuels, deforestation and tobacco. The downside to ethical investing is that the remaining companies may be having a negative impact on the planet.

ESG Investing

Environmental Social & Governance

A company that scores highly with regards to how strong its environmental, social and governance policies are may be included in an ESG investment, however its product or services may have a negative impact on the planet.
For example British American Tobacco has been included in the FTSE 100 Top 5 highest rated ESG companies by Hargreaves Lansdown

Impact Investing

Investing for positive impact

Impact investing takes the previous two steps and builds upon them to say it will remove controversial industries (Ethical), look for well run companies with strong policies (ESG), and then finally ‘positively screen in’ companies that are creating products and services that have a positive measurable social and or environmental impact on the planet, usually guided by the UN Sustainable Development Goals.

Impact investing is what we do here at BlueSphere.

Here are some of the companies we invest in

What About Performance?

It is a common misunderstanding that by investing in-line with your values means you therefore have to give up financial performance.

The chart shows the financial returns of our sustainable impact portfolios across all three risk categories for the past 4 years against their benchmark and the FTSE 100.

Whilst past performance is no guide to the future, most importantly what this chart shows is that you can earn financial return and create a positive impact on the planet.

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Sustainable Portfolio Performance (Excluding costs and charges) Data From FE FundInfo 2021