{"id":5252,"date":"2023-07-20T13:35:43","date_gmt":"2023-07-20T13:35:43","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5252"},"modified":"2023-07-20T13:35:44","modified_gmt":"2023-07-20T13:35:44","slug":"understanding-esg-investments-what-should-you-know","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/understanding-esg-investments-what-should-you-know\/","title":{"rendered":"Understanding ESG investments \u2013 What should you know?"},"content":{"rendered":"<p>The financial landscape in the UK, as well as globally, is in a constant state of change.<\/p>\n<p><!--more--><\/p>\n<p>The current focus is very much based around Environmental, Social, and Governance (ESG) investments.<\/p>\n<p>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<p>Investors worldwide are increasingly embracing ESG principles, shifting away from purely profit-driven strategies toward more sustainable approaches.<\/p>\n<p>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<p><strong>What are ESG investments? <\/strong><\/p>\n<p>ESG investments take into account the environmental, social, and governance aspects of a business.<\/p>\n<p>Environmental factors evaluate a company&#8217;s impact on the environment, such as energy usage, waste management, pollution, conservation of natural resources, and more.<\/p>\n<p>The social element considers how a business manages relationships with internal and external stakeholders, as well as local communities.<\/p>\n<p>The governance component assesses a business&#8217;s leadership, executive compensation, transparency in accounting methods, and protection of shareholder rights.<\/p>\n<p><strong>Net zero targets<\/strong><\/p>\n<p>ESG investments also play a crucial role in meeting net-zero targets.<\/p>\n<p>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<p>ESG investments can help achieve these targets by favouring businesses that actively reduce their carbon footprint.<\/p>\n<p>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<p>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<p><strong>Plastic free July<\/strong><\/p>\n<p>ESG investments can also address pressing issues like plastic pollution.<\/p>\n<p>Plastic Free July, a global movement celebrated every July, encourages individuals and businesses to minimise their plastic waste.<\/p>\n<p>Businesses that actively reduce their plastic consumption and adopt sustainable packaging options score higher on the environmental component of ESG criteria.<\/p>\n<p>For example, businesses that switch to recyclable or compostable packaging or promote refillable options contribute positively to reducing plastic waste.<\/p>\n<p>By investing in these businesses, investors can support the transition to a society that is less dependent on plastic.<\/p>\n<p>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<p><strong>If you&#8217;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":"<p>The financial landscape in the UK, as well as globally, is in a constant state of change.<\/p>\n","protected":false},"author":2,"featured_media":5255,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,30,31,4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5252"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5252"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5252\/revisions"}],"predecessor-version":[{"id":5253,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5252\/revisions\/5253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5255"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}