James Wallis
More and more Derby people are asking for help in putting money into companies which make profits without harming the planet as sustainable investing hits the mainstream, according to a city financial adviser.
James Wallis, Founder of Derby-based Aristotle Financial Planning, says that he is fielding increasing numbers of enquiries from clients who want to buy shares in companies which give them a return on their money and make a positive social and environmental impact at the same time.
Financial experts say that sustainable investing has turned from a trend into a permanent shift in the way that people approach putting their money onto the stock market, with increasing numbers of would-be shareholders searching for evidence that companies are helping to solve urgent issues such as climate change, gender and racial equality.
In response, financial advisors such as Aristotle are now putting together fact-files on the options available and identifying investment schemes that contain companies known to be acting ethically and sustainably.
James said: “Sustainable investing has been around for a while, but it’s accelerated massively over the past three years and now it’s reached our level, which shows how it’s entering the mainstream.
“An increasing number of clients we work with are expressing a wish to only invest in companies who can demonstrate their commitment to making a difference but which also offer them a good return on their investment, so there is a balance that they’re looking to strike.”
James believes that the move towards sustainable investing really took off following the signing of the Paris Agreement, the international treaty on climate that was adopted in 2015.
Six years on, that and recent events, such as the pandemic and various social justice movements, has created a requirement for companies to demonstrate that they are taking responsibility and not making money for their shareholders at the expense of others.
James said: “This goes way beyond avoiding tobacco or arms companies when putting together a portfolio and some of the investment companies we work with are making sustainable investment offerings as their default offering, which shows us where the direction of travel is heading.
“There is currently no evidence to show that sustainable investing gives a better or a worse return than a standard investment, but the fact that governments are taking sustainability seriously means big business will follow suit.
“However, while it is welcome, it is also a minefield, because there is a lot of technical jargon for people to get their heads around and a fair degree of green-washing too.
“I would certainly recommend that people do their research before investing and certainly get some professional advice.”
James founded his company last year because he saw a need for a financial advice service that is straightforward and personable.
The company has nearly 100 clients all across Derbyshire and further afield and James also holds free drop-in sessions at local firms and public sector organisations to offer staff advice on pensions, investments and reducing debt.
To find out more visit www.aristotlefinancialplanning.co.uk.
