THE Department of Agriculture’s new report tells us that 78 per cent of Northern Irish households say they are concerned about the environment.
That’s higher than ever before, in keeping with the general rise in profile of issues such as recycling, alternatives to fossil fuels, and global warming.
Within the whole range of environmental concerns, climate change was the primary hot topic for households in Northern Ireland in 2019/20.
Well, the good news is, we are not powerless to vote for climate change, when arranging our finances. Did you know that you have more clout than you might think, in this regard?
If you have savings or a pension, your money is most likely invested in the stock markets, and if you don’t check, then we have to ask you: ‘Do you know what YOUR money is doing tonight?’
Here’s an interesting snippet or two to put ethical investment in context.
The first ethical investment fund was the Pax Fund (‘pax’ is Latin for ‘peace’), launched in the US in 1971 for people opposed to the Vietnam War, and wanting to invest in line with their personal values. The Pax Fund refused to invest in any company supplying or profiting from that conflict.
Before the Pax Fund, and successive ethical alternatives, we had no choice. There were anti-smoking organisations invested in tobacco firms, peace campaigners investing in the armaments industries, and (our personal favourite) the Commissioners of the Church of England found one of their investments included shares in the Playboy Channel.
Today you’ll be glad to hear that we do have choice. If you have some savings or a pension, you are in a powerful position. You can ‘vote with your money’ by putting it in savings or investments that avoid unethical companies, and seek out only those companies that, like you, have a conscience.
Ethical fund managers intensively research manufacturing and services companies around the globe, and make careful decisions as to whether they are environmentally friendly or not.
There are funds that allow you to vote against global warming by avoiding oil and gas investments, to vote against conflict and war by avoiding military and defence suppliers, or to vote against fracking, tobacco, meat, and intensive farming.
You can also choose to vote FOR industries or companies that are strongly pro-environment, encourage biodiversity, or promote renewable energies.
You’ve got to be careful, though, and take advice from an expert who can check the various ethical funds on the market to see exactly how ‘ethical’ they are. Funds range from ‘light green’ to ‘dark green’ depending on the degree of their commitment to the issues.
Some of the lighter ethical funds, for example, still invest in oil and gas, believing these to be essential to produce a competitive return. However, they claim to select those energy companies which have an environmental policy in place, and are making some gestures towards respecting the environment.
Down at the dark green end, on the other hand, are truly ethical funds seeking out companies which provide training to develop their workers, help to provide clean water, ensure good levels of living accommodation, and provide affordable healthcare.
These are measures taken in addition to the ethical nature of the products they make and their general ethics and in-house manufacturing practices.
Ethical investment is for everyone - it’s never too late to put your money to work for the world that we’ll be leaving as our legacy to our children. It’s likely to be particularly popular with you if you are one of the ‘millennial’ generation, those born in the 80s and early 90s, and you are now in your 20s or 30s.
Are you one of the 78 per cent of people in Norn Iron who wants their finances to make a difference for the environment? Good financial advice is only one fossil-free phone call away!
Michael Kennedy and Shaun Doherty are independent financial advisers and pensions specialists, and can be contacted on 028 71886005. Further information on Facebook at ‘Kennedy Independent Financial Advice Ltd’ or via www.mkennedyfinancial.com
