{"id":20071,"date":"2023-07-20T11:02:07","date_gmt":"2023-07-20T11:02:07","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=20071"},"modified":"2023-12-19T17:06:47","modified_gmt":"2023-12-19T17:06:47","slug":"understanding-esg-investments-what-should-you-know","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/understanding-esg-investments-what-should-you-know\/","title":{"rendered":"Understanding ESG investments \u2013 What should you know?"},"content":{"rendered":"\n

The financial landscape in the UK, as well as globally, is in a constant state of change.<\/p>\n\n\nRead more: Understanding ESG investments \u2013 What should you know?<\/span><\/a>\n\n\n

The current focus is very much based around Environmental, Social, and Governance (ESG) investments.<\/p>\n\n\n\n

The growing worldwide concern for climate change, social justice, and corporate accountability is reshaping business practices, and the investment community is not exempt.<\/p>\n\n\n\n

Investors worldwide are increasingly embracing ESG principles, shifting away from purely profit-driven strategies toward more sustainable approaches.<\/p>\n\n\n\n

They are now committed to investing in companies that are not only financially robust but also have a positive impact on the environment and society.<\/p>\n\n\n\n

What are ESG investments?<\/strong><\/p>\n\n\n\n

ESG investments take into account the environmental, social, and governance aspects of a business.<\/p>\n\n\n\n

Environmental factors evaluate a company’s impact on the environment, such as energy usage, waste management, pollution, conservation of natural resources, and more.<\/p>\n\n\n\n

The social element considers how a business manages relationships with internal and external stakeholders, as well as local communities.<\/p>\n\n\n\n

The governance component assesses a business’s leadership, executive compensation, transparency in accounting methods, and protection of shareholder rights.<\/p>\n\n\n\n

Net zero targets<\/strong><\/p>\n\n\n\n

ESG investments also play a crucial role in meeting net-zero targets.<\/p>\n\n\n\n

In 2019, the UK became the first major economy to pass a net-zero emissions law, committing to achieve net-zero greenhouse gas emissions by 2050.<\/p>\n\n\n\n

ESG investments can help achieve these targets by favouring businesses that actively reduce their carbon footprint.<\/p>\n\n\n\n

Financial regulators in the UK, including the Financial Conduct Authority (FCA) and the Bank of England, are introducing stricter disclosure requirements related to climate-related risks.<\/p>\n\n\n\n

This encourages financial institutions to be more transparent about their exposure to such risks and to increase investments in companies with strong environmental practices.<\/p>\n\n\n\n

Plastic free July<\/strong><\/p>\n\n\n\n

ESG investments can also address pressing issues like plastic pollution.<\/p>\n\n\n\n

Plastic Free July, a global movement celebrated every July, encourages individuals and businesses to minimise their plastic waste.<\/p>\n\n\n\n

Businesses that actively reduce their plastic consumption and adopt sustainable packaging options score higher on the environmental component of ESG criteria.<\/p>\n\n\n\n

For example, businesses that switch to recyclable or compostable packaging or promote refillable options contribute positively to reducing plastic waste.<\/p>\n\n\n\n

By investing in these businesses, investors can support the transition to a society that is less dependent on plastic.<\/p>\n\n\n\n

Through ESG investing, both individuals and institutions can support businesses that not only deliver financial performance but also make positive contributions to society and the environment.<\/p>\n\n\n\n

If you’re interested in making an ESG investment with sustainability at its core, reach out to our experts today for guidance and support.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The financial landscape in the UK, as well as globally, is in a constant state of change. The current focus … Understanding ESG investments \u2013 What should you know?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-20071","post","type-post","status-publish","format-standard","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/20071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=20071"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/20071\/revisions"}],"predecessor-version":[{"id":20073,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/20071\/revisions\/20073"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=20071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=20071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=20071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}