Investing in a better world

At Ethical Funds, we engage and work with the companies we invest in to improve their ESG practices and reduce the risks they face.

Investors around the world are realizing that it is easy to align their socially conscious values with their investments.

With the growth of socially responsible investing – and the wide range of investment options available – you can now invest widely in companies that are socially responsible, without sacrificing investment performance.

Socially responsible investing and the bottom line

Socially responsible investing marries traditional financial analysis with environmental, social and governance analysis.

Ethical Funds believes that the best possible returns can be achieved by investing in companies that combine strong financial performance with positive social, environmental and governance (ESG) performance. This is particularly important as investors worldwide become increasingly concerned about the impact our activities are having on the global community.

To ensure every investment we make meets our rigorous standards, we evaluate a company’s investment value and identity the environmental, social and governance risks the company faces.

• Environmental risk: Do the company’s activities have a negative impact on the air, land or water? We look into issues, such as biodiversity, land-use planning, emissions, climate change and water use.

• Social risk: Does the company respect human rights and workers’ safety?

• Governance risk: How is the company run? We look at factors such as board of director diversity, independence and executive compensation.

Engaging a company to produce better returns

But true socially responsible investing doesn’t stop there. Unlike some socially responsible investment firms, Ethical Funds goes well beyond simply screening out companies that don’t match selection criterion. As socially active investors, we continuously engage and work with many of the companies we invest in to improve their environmental, social and governance practices and reduce the risks they face.

Our ongoing attention to managing risks and responsible practices do more than simply help us create wealth for our investors – it helps us create a better world.