Climate change is driver for ethical investing
FOR IMMEDIATE RELEASE
17 December 2009, London: Leading independent ethical and environmental financial adviser, Barchester Green Investment, a UK based partnership, confirmed today that concern over climate change is now the main driver for ethical investment for a high proportion of new and existing clients.
Jonathon Clark, Director at Barchester Green, says, “In the last year 70% of our new business has been generated by concerns over climate change and a strong desire by our clients for ethical investments with either no effect or a positive one on climate change. People are no longer waiting for politicians to act, they are voting with their cheque books. It is not sufficient simply to screen companies negatively and avoid investing in the arms trade, tobacco production, or companies with a history of employment abuse, for example. Our clients are now demanding the option of selecting companies which actively contribute to tackling climate change and which are aware of the ethical and environmental implications of their businesses.” He adds, “There is a growing realisation among private investors that choosing investments on ethical and environmental grounds is not a barrier to realising healthy returns. There is plenty of research to show that in the longer term such investments outperform the more traditional investment choices.”
Over the past decade there has been a 100% increase in sums invested ethically, motivated by a growing awareness of environmental issues and the realisation that it is possible to get specialist, targeted advice on how to invest in a financially sound and beneficial way whilst still supporting ethical funds. Indeed, the Investment Management Association’s research shows that ethical funds are holding their value better in this difficult climate.
Against the background of the Copenhagen Climate Change Conference 2009, and in the wake of yet more terrible weather conditions and the collateral damage caused, both here in the UK and all over the world, Barchester Green believes that the climate change scenario can no longer be passed off as purely media scare stories but needs to be taken seriously, not only from the environmental aspect but also from an investment point of view.
Bruce Jenkyn-Jones, managing director of listed equities at Impax, comments: “The intense media pressure which is following the discussions in the Danish capital and growing concern over climate change will continue to highlight the environmental sector. Irrespective of the outcome of this particular event, we believe that interest in clean energy, energy efficiency and the drivers behind environmental markets will continue to strengthen for many years to come.”
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Notes to Editors:
Impax Asset Management is a leading specialist investment manager dedicated to the environmental sector. Founded in 1994, Impax now manages c. US $2.3 billion* across a range of closed end funds, open ended funds and segregated accounts on behalf of institutional and private investors.
The Impax listed equities research process is managed on a bottom up stock picking basis with an emphasis on fundamental analysis. Stocks are subjected to a detailed level of due diligence with quantitative analysis, particularly valuation, amongst the key investment criteria. The total universe contains around 1,500 stocks.
Impax has a track record of delivering excellent returns across long only, private equity and hedge fund strategies. Key investment team members have been working together at Impax for over a decade and have spent the majority of their careers in the environmental sector.
Impax manages a range of specialist own brand and white label funds. Impax Environmental Markets plc (IEM) is the UK’s largest environmental markets fund and in the FTSE 250 index.
In 2007, Impax and FTSE established a partnership to develop and manage the Environmental Markets Index Series. The indices in the series are derived from a database managed by Impax.
Impax is a signatory to the UN Principles of Responsible Investment (UNPRI) and the Carbon Disclosure Project and is also a member of the Institutional Investors Group on Climate Change (IIGCC) and the Investor Network on Climate Risk (INCR).
Impax has an award winning track record and most recently won the 2009 Financial News Award for Excellence in Institutional Asset Management as Sustainable Investment Manager of the Year.
* Assets under management as of 30th November 2009
Barchester Green Investment Ltd is the UK’s longest established Independent Financial Adviser (IFA) specialising in socially responsible, environmental and ethical investment. The company has been in business since 1985, advising both individuals and companies, with 3,500 clients and £90 million under management. Barchester Green provides a complete range of advice, from individual and company pension management to mortgages, life assurance and wealth management. Restructured in 2008 to become a partnership, it is wholly owned by the advisers and the administrators. Barchester Green is committed to donating a fixed percentage of its annual profits to charity and social enterprise businesses. Barchester Green Investment is a founder member of the Ethical Investment Association (EIA), an association for financial advisors in the ethical arena, and of UKSIF, the sustainable energy and finance association.