Investing in tackling climate change

Sponsored feature | Michael Bretherick, chartered financial planner, Gibbs Denley Financial Services

A recent report released by the Intergovernmental Panel on Climate Change (IPCC) identified a significant investment gap relating to targets to tackle climate change: it’s estimated that current investment is three to six times lower than the levels needed by 2030 to reach climate change goals.

However, it also noted that there are signals from governments and the investment community that steps are being taken.

So, as an individual investor, what can you do to reflect climate action in your investment decisions?

While your own portfolio may seem insignificant when you look at how much money is needed to transform economies to become more environmentally friendly, the decisions made by individual investors are having an effect.

As more people start to consider climate change and other important issues, it can build up to encourage businesses and governments to act.

If you’re concerned about climate change and want to reflect this in your investment decisions, there are several ways to do so, such as:

• Divest from fossil fuel companies and others that contribute to climate change
• Invest in companies supporting energy-efficient or renewable industries
• Invest through funds that have an environmental criteria
• Choose a sustainable investment fund for your pension.

While you may want your investments to reflect warnings about climate change and your personal views, it’s important that you don’t overlook things like your risk profile or diversification.

As with any investment, you should consider if the decisions you’re making are appropriate for you and your goals. Balancing your goals with your views on issues like climate change is possible.

We can work with you to create a portfolio that suits you and reflects your priorities. If you’d like to arrange a meeting to discuss your investments, please contact our team to find out more about how we could help you.

Call 01954 233650 or email financial@gibbsdenley.co.uk.

The value of your investments can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

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