A responsible approach to investments

Climate risk is one of the biggest risks we all face, it poses risks and many opportunities to your funds. Many of the largest brands globally are now announcing commitments for their operations to become net zero.

These rotational shifts will present investment opportunities.

What is ESG integration?

Environmental, Social and Governance ESG integration is an approach which aims to identify and quantify the effect of ESG risks on companies and their subsequent effect on the performance of the assets that you hold.

You can take advantage of these opportunities by investing a portion of your portfolio in one of the range of ESG focussed funds we have access to. The funds we use are run are available through global and financially secure fund managers.

 

What are ESG risks?

With any investment, there are associated risks. Your capital is at risk.

Risk is can come from many sources such as economic, political, interest rates, inflation, market and ESG risk. ESG risks include those related to climate change, environmental management practices, human rights issues and anti bribery/corruption risk.

Sustainable Finance Disclosure Regulations (SFDR)

The SFDR sets out harmonised rules on transparency and aims to include environmental, social and governance (ESG) “sustainability” considerations and risks in the decision-making process of investors and asset managers in a consistent manner across the EU financial services sector.

A sustainable investment product is where a product is sold as promoting environmental or social characteristics. It is envisaged that greater transparency and sustainability-related information will enable investors to compare financial products and to make informed investment decisions about ESG products.

When providing advice, Nelson Life considers the adverse impact of investment decisions on sustainability. As part of our research and assessment of products, Nelson Life will examine the Product Providers literature to compare financial products and to make informed investment decisions about ESG products.

Nelson Life will at all times act in your best interests and keep clients informed accordingly. The consideration of sustainability risks can impact on the returns of financial products.

Research has proven that those that engage with a professional advisor at least once a year are more financially confident.

  • More savings and investments.

  • More likely to have a retirement plan.

  • More financially protected in the event of illness, accident, diagnosis of a specified illness or even death.

  • More secure and confident about their future.

  • Higher annual savings, larger pension funds, wealth growth, adding considerably to your financial well being and helping you achieve your goals.

Source; Ireland (Standard Life report), UK (Unbiased/Standard life report), Australia (KPMG Econtech report) and Canada (CIRAMNO report).