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Ethics are ‘viable investment strategy’, says report
Doing well while doing good is viable investment strategy according to EQ Investors, which has today published its annual ‘impact report’.
The report, entitled ‘Investing for people and the planet’, presents the social, environmental and financial results generated by EQ’s Positive Impact Portfolios.
Key findings from the research included:
• An increase in the impact made per £1m invested:
◦ Transition to renewables – generated 189 MWh of renewable energy, equivalent to the electricity used by 57 households;
◦ Carbon footprint reduction – avoided 228 tonnes of C02 emissions, equivalent to taking 50 cars off the road;
◦ Reached 50 people with preventative healthcare and delivered 380 hours of school, higher and adult education.
• More “inclusive” than traditional investments – EQ’s Positive Impact Portfolio attract a higher proportion of women investors (54%) than the UK average (43%) and are also “more attractive to younger investors.”
• Evidence that you can invest sustainably without sacrificing return – the portfolios have beaten their benchmarks over the past seven years, “adding to evidence that not only is there no trade-off, but that sustainable investing reduces downside risk”.
• Faster growing than MSCI & FTSE companies – whether you look at revenues, profit growth or R&D spend, companies within the EQ Positive Impact Portfolios compare favourably with the broader market.
Damien Lardoux, head of impact investing at EQ Investors, said: “Not only have the EQ Positive Impact Portfolios achieved more impact than ever before, but we present further evidence that you can invest sustainably without sacrificing returns.
“The positive impact approach not only reduces downside risk, but captures additional upsides from competitive advantages, megatrends and legislative support.”