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Investing ethically to ‘effect change’

Hugh Cuthbert, co-fund manager of the SVM All Europe SRI Fund, spoke with Alex Blackburne to explain how, by investing wisely in willingly-improving companies, his fund is designed to effect change within the global economy.

Each ethical investment fund, whilst possessing similar underlying qualities, is different in its approach to investing. Some opt to focus on a select group of ‘good’ sectors; some seek out progress; whilst some look at investing in companies that are innovating in their field.



Hugh Cuthbert, co-fund manager of the SVM All Europe SRI Fund, spoke with Alex Blackburne to explain how, by investing wisely in willingly-improving companies, his fund is designed to effect change within the global economy.

Each ethical investment fund, whilst possessing similar underlying qualities, is different in its approach to investing. Some opt to focus on a select group of ‘good’ sectors; some seek out progress; whilst some look at investing in companies that are innovating in their field.

The SVM All Europe SRI Fund is very different in that it does not screen out many industries, even though they might be traditionally classed as unethical.

“We have four principle areas of focus”, says the fund’s co-manager, Hugh Cuthbert.

“We look at the personnel, society and stakeholders, human rights, and the environment … We’re not looking for best-in-class and we’re not looking for industries of the future.

“We’re trying to use our clout as shareholders to effect change, and we’re looking to effect change in those four principle areas.”

In contrast to funds that Blue & Green Tomorrow has profiled previously, Cuthbert added that there were less than a handful of industries that the SVM All Europe SRI Fund excluded.

“When we looked at our potential investor base, we found that certain aspects such as tobacco, pornography and weapons are simply too abhorrent for the majority of investors in an SRI fund”, he explains.

“At the same time, we believe that we should invest in industries where others may not go.

“We’re trying to keep the negative screening as minimal as possible, because the fund is about change; it’s not about ignoring industries simply because they’re considered to be abhorrent by some potential investors.”

This novel approach to investing breathes fresh air into the ethical investment sector. It is good to hear about funds that completely reject unethical industries, but on the other hand, it’s refreshing to come across one that is striving to effect change within the economy.

Launched in October 2006, Cuthbert’s fund has assets under management of £6.9m.

One of the companies that it invests in is Yule Catto, a UK chemicals company.

“It’s a good example of not necessarily the greenest of industries”, says Cuthbert, “but again, our philosophy is that it’s a chemicals company so it has opportunities to do a great deal of harm to the environment, so let’s ensure that it has the processes in place that will help minimise the impact it has.

“In some ways, Yule Catto has shown a great willingness for improvement, and it’s a good example of where we’ve made money and at the same time we think we’ve prompted change from an SRI perspective as well.”

As with most of the investment companies that B&GT has spoken to, SVM Asset Management’s range of funds also includes vehicles that aren’t billed as specifically ethical or SRI. But, according to Cuthbert, the company is “100% behind” the ethical investment sector:

“The owners and the management of SVM have very much put their money where their mouths are in terms of launching this fund.

“I’ve got quite a long track record of this, and at previous firms where I’ve worked, if there hasn’t been an ethical fund, we’ve launched one.

“The SVM All Europe SRI Fund is now a core product. It’s been a very good performing fund for us.”

Yet again, the one myth that often chokes the ethical investment sector – a sacrifice of performance for ethics – is refuted by an expert in the field.

Cuthbert went on to explained why ethical investment should be the norm. “When I first started doing this, the ethical investment industry was viewed as an annoying anomaly and one that would probably go away”, he says.

“In some ways, SRI investing wasn’t so far up the agenda then … Yes, there were NGOs, and certain investors were very interested in these issues, but the mainstream community didn’t have the foresight to see that these issues, regardless of whether you morally believe in them, are very important economically. As the years have progressed that thinking has changed.”

In line with the fund’s mantra of sustainable investment, he added that responsible financing was imperative for the future of our economy.

“SRI is obviously important from a moral perspective, but what’s absolutely key for me, is that it’s important from an economic perspective”, he claims.

“I genuinely think that if you add something to an investment process, such as this fund’s four principles, you are doing just that.

“You are adding to the investment process, you are not detracting from it. And who would argue now that the environment isn’t important economically?”

As Ben Goldsmith told B&GT, “There’s no business to be done on a dead planet”. Therefore, thinking carefully about environmental impact and ensuring money is invested in the right places, is undeniably important.

For more information on the SVM All Europe SRI Fund, take a look at its website. Alternatively, for more general information on ethical investment, fill in our online form and we’ll point you in the right direction.

Previous fund profiles:

IM WHEB Sustainability Fund
Kames Capital Ethical Equity Fund
Quadris Environmental Forestry Fund
Ludgate Environmental Fund
7IM Sustainable Balance Fund
Allianz RCM Global EcoTrends Fund
Cheviot Climate Assets Fund
Skandia Ethical Fund
Premier Ethical Fund


How Going Green Can Save A Company Money



going green can save company money
Shutterstock Licensed Photot - By GOLFX

What is going green?

Going green means to live life in a way that is environmentally friendly for an entire population. It is the conservation of energy, water, and air. Going green means using products and resources that will not contaminate or pollute the air. It means being educated and well informed about the surroundings, and how to best protect them. It means recycling products that may not be biodegradable. Companies, as well as people, that adhere to going green can help to ensure a safer life for humanity.

The first step in going green

There are actually no step by step instructions for going green. The only requirement needed is making the decision to become environmentally conscious. It takes a caring attitude, and a willingness to make the change. It has been found that companies have improved their profit margins by going green. They have saved money on many of the frivolous things they they thought were a necessity. Besides saving money, companies are operating more efficiently than before going green. Companies have become aware of their ecological responsibility by pursuing the knowledge needed to make decisions that would change lifestyles and help sustain the earth’s natural resources for present and future generations.

Making needed changes within the company

After making the decision to go green, there are several things that can be changed in the workplace. A good place to start would be conserving energy used by electrical appliances. First, turning off the computer will save over the long run. Just letting it sleep still uses energy overnight. Turn off all other appliances like coffee maker, or anything that plugs in. Pull the socket from the outlet to stop unnecessary energy loss. Appliances continue to use electricity although they are switched off, and not unplugged. Get in the habit of turning off the lights whenever you leave a room. Change to fluorescent light bulbs, and lighting throughout the building. Have any leaks sealed on the premises to avoid the escape of heat or air.

Reducing the common paper waste

paper waste

Shutterstock Licensed Photo – By Yury Zap

Modern technologies and state of the art equipment, and tools have almost eliminated the use of paper in the office. Instead of sending out newsletters, brochures, written memos and reminders, you can now do all of these and more by technology while saving on the use of paper. Send out digital documents and emails to communicate with staff and other employees. By using this virtual bookkeeping technique, you will save a bundle on paper. When it is necessary to use paper for printing purposes or other services, choose the already recycled paper. It is smartly labeled and easy to find in any office supply store. It is called the Post Consumer Waste paper, or PCW paper. This will show that your company is dedicated to the preservation of natural resources. By using PCW paper, everyone helps to save the trees which provides and emits many important nutrients into the atmosphere.

Make money by spreading the word

Companies realize that consumers like to buy, or invest in whatever the latest trend may be. They also cater to companies that are doing great things for the quality of life of all people. People want to know that the companies that they cater to are doing their part for the environment and ecology. By going green, you can tell consumers of your experiences with helping them and communities be eco-friendly. This is a sound public relations technique to bring revenue to your brand. Boost the impact that your company makes on the environment. Go green, save and make money while essentially preserving what is normally taken for granted. The benefits of having a green company are enormous for consumers as well as the companies that engage in the process.

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5 Easy Things You Can Do to Make Your Home More Sustainable




sustainable homes
Shutterstock Licensed Photot - By Diyana Dimitrova

Increasing your home’s energy efficiency is one of the smartest moves you can make as a homeowner. It will lower your bills, increase the resale value of your property, and help minimize our planet’s fast-approaching climate crisis. While major home retrofits can seem daunting, there are plenty of quick and cost-effective ways to start reducing your carbon footprint today. Here are five easy projects to make your home more sustainable.

1. Weather stripping

If you’re looking to make your home more energy efficient, an energy audit is a highly recommended first step. This will reveal where your home is lacking in regards to sustainability suggests the best plan of attack.

Some form of weather stripping is nearly always advised because it is so easy and inexpensive yet can yield such transformative results. The audit will provide information about air leaks which you can couple with your own knowledge of your home’s ventilation needs to develop a strategic plan.

Make sure you choose the appropriate type of weather stripping for each location in your home. Areas that receive a lot of wear and tear, like popular doorways, are best served by slightly more expensive vinyl or metal options. Immobile cracks or infrequently opened windows can be treated with inexpensive foams or caulking. Depending on the age and quality of your home, the resulting energy savings can be as much as 20 percent.

2. Programmable thermostats

Programmable thermostats

Shutterstock Licensed Photo – By Olivier Le Moal

Programmable thermostats have tremendous potential to save money and minimize unnecessary energy usage. About 45 percent of a home’s energy is earmarked for heating and cooling needs with a large fraction of that wasted on unoccupied spaces. Programmable thermostats can automatically lower the heat overnight or shut off the air conditioning when you go to work.

Every degree Fahrenheit you lower the thermostat equates to 1 percent less energy use, which amounts to considerable savings over the course of a year. When used correctly, programmable thermostats reduce heating and cooling bills by 10 to 30 percent. Of course, the same result can be achieved by manually adjusting your thermostats to coincide with your activities, just make sure you remember to do it!

3. Low-flow water hardware

With the current focus on carbon emissions and climate change, we typically equate environmental stability to lower energy use, but fresh water shortage is an equal threat. Installing low-flow hardware for toilets and showers, particularly in drought prone areas, is an inexpensive and easy way to cut water consumption by 50 percent and save as much as $145 per year.

Older toilets use up to 6 gallons of water per flush, the equivalent of an astounding 20.1 gallons per person each day. This makes them the biggest consumer of indoor water. New low-flow toilets are standardized at 1.6 gallons per flush and can save more than 20,000 gallons a year in a 4-member household.

Similarly, low-flow shower heads can decrease water consumption by 40 percent or more while also lowering water heating bills and reducing CO2 emissions. Unlike early versions, new low-flow models are equipped with excellent pressure technology so your shower will be no less satisfying.

4. Energy efficient light bulbs

An average household dedicates about 5 percent of its energy use to lighting, but this value is dropping thanks to new lighting technology. Incandescent bulbs are quickly becoming a thing of the past. These inefficient light sources give off 90 percent of their energy as heat which is not only impractical from a lighting standpoint, but also raises energy bills even further during hot weather.

New LED and compact fluorescent options are far more efficient and longer lasting. Though the upfront costs are higher, the long term environmental and financial benefits are well worth it. Energy efficient light bulbs use as much as 80 percent less energy than traditional incandescent and last 3 to 25 times longer producing savings of about $6 per year per bulb.

5. Installing solar panels

Adding solar panels may not be the easiest, or least expensive, sustainability upgrade for your home, but it will certainly have the greatest impact on both your energy bills and your environmental footprint. Installing solar panels can run about $15,000 – $20,000 upfront, though a number of government incentives are bringing these numbers down. Alternatively, panels can also be leased for a much lower initial investment.

Once operational, a solar system saves about $600 per year over the course of its 25 to 30-year lifespan, and this figure will grow as energy prices rise. Solar installations require little to no maintenance and increase the value of your home.

From an environmental standpoint, the average five-kilowatt residential system can reduce household CO2 emissions by 15,000 pounds every year. Using your solar system to power an electric vehicle is the ultimate sustainable solution serving to reduce total CO2 emissions by as much as 70%!

These days, being environmentally responsible is the hallmark of a good global citizen and it need not require major sacrifices in regards to your lifestyle or your wallet. In fact, increasing your home’s sustainability is apt to make your residence more livable and save you money in the long run. The five projects listed here are just a few of the easy ways to reduce both your environmental footprint and your energy bills. So, give one or more of them a try; with a small budget and a little know-how, there is no reason you can’t start today.

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