TNR Wealth

It’s Easy Being Green

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6626 3000.

With more and more people realising the importance of caring for the planet on which we live, it’s not surprising that many are looking for investments that make a positive impact on our environment, our communities, and our children’s future as a whole.

Investor concerns now range from the environmental implications of a company’s activities, to how it treats its workforce and the communities in which it operates, and to how ethically the company is governed.

These concerns are usually wrapped up under the description of Socially Responsible Investing (SRI), or Environmental, Social and Governance (ESG). A number of managers offer specific SRI funds.

Shades of Green

There is a wide range of SRI funds, and they use different methods for weeding out undesirable investments, or identifying desirable ones. For example, some managers use a negative screen to exclude things like alcohol, tobacco, gambling or uranium mining. These funds are sometimes described as ‘light green’. Another form of ‘light green’ fund is those that apply a ‘best of class’ approach. Such a fund might still invest in mining companies, but only the ones with the best environmental record.

Other funds apply positive screens, specifically looking for companies that are trying to make the world a better place as well as generate a return for shareholders. These include renewable energy companies, cosmetics companies that don’t use animal testing, or property companies that specialise in sustainable development. Funds that operate a positive screen are considered ‘dark green’.

Other colours

Green isn’t the only colour when it comes to socially responsible investing. Non-environmental concerns are important to many investors who want to avoid any involvement in companies associated with alcohol, tobacco, gambling or armaments. Corporate governance and social equity issues are also a factor for some investors.

If you are interested in learning more about socially responsible investing, talk to us about the many options available.

Note: past performance is not an indicator of future results.

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.