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Let’s make ethical investment bigger and better in 2013



In the UK, 2012 has been an interesting year for ethical investment. Big scandals have hit big banks, consumer protests and investor revolts on tax avoidance and executive pay made headline news and campaigns such as Move Your Money and National Ethical Investment Week have helped to raise the profile of ethical finance. All of this has taken place alongside a growing sense that a more long-term, responsible approach to investment is urgently needed.

Surveys undertaken by EIRIS and others continue to confirm public enthusiasm for ethical investment. In the UK, EIRIS’ 2011 Ipsos MORI consumer poll found that 82% of the consumers want financial product providers to pay more attention to environmental, social and governance (ESG) risks when deciding which companies to invest in or lend money to, as part of ensuring good financial return. Whilst in France, EIRIS’ 2012 Ipsos MORI poll found that over 50% of French retail investors think environmental, social and ethical criteria are important when making financial decisions.

Against this backdrop of growing interest in ethical investment, FairPensions’ recent report which claims UK ethical funds are failing to represent the views of their customers by focusing mainly on negative screening and failing to engage with companies to improve performance sounds, at best, like a missed opportunity for the ethical investment community as a whole.

In EIRIS’ 2010 Ipsos MORI national opinion poll, consumers felt that banks and financial institutions should prioritise current ethical concerns such as protecting human rights, tackling climate change, protecting the environment and investing in fair trade in their lending and investing activities, more so than avoiding ‘sin’ issues relating to the manufacturing of alcohol, tobacco and gambling which have traditionally been the focus of ethical investors.

Survey respondents gave the following issues the highest priority: human rights (67% scoring 7 – 10), investing in fair trade (66%), protecting the environment (62%), avoiding arms manufacturers (61%) and tackling climate change (59%). A smaller proportion prioritised the avoidance of companies involved in the manufacturing of alcohol (22% scoring 7 – 10), tobacco (37%) and gambling (38%).

Consumer attitudes to ethical investment are clearly evolving, but it’s important to remember that issues such as gambling, pornography, tobacco production and weapons manufacture also remain priority areas of concern for many investors.

Over the last decade we have developed new criteria to cover a broad range of societal concerns such as climate change, water and resources scarcity, human rights and environmental issues. We have developed research criteria which are relevant to specific sectors or areas of the world such as obesity, indigenous rights, access to medicines or women on the board. We have also launched engagement and voting services which enable investors to become active owners and exert a positive influence in the companies within which they invest.

A growing number of ethical funds in the UK and elsewhere are embracing this broader agenda of issues and are using our positive criteria and sustainability ratings to avoid sustainability laggards, engage to improve sustainability performance, or to invest in companies providing solutions to sustainability challenges.

But mainstreaming green and ethical investment isn’t just about ensuring a good range of green and ethical financial products are available to all consumers across all aspects of ethical finance. It’s also about ensuring that retail fund managers embed sustainable investment principles across all funds under management, not just in the green and ethical funds they offer. This might mean engaging to improve performance, or integrating ESG factors into investment decisions to reduce risk and identify investment opportunities.

Ethical opinions and priorities differ from person to person and the 90+ UK green and ethical funds currently available already offer a variety of investment options to UK investors. However, there is scope for some existing funds to broaden the scale and scope of their investment approach and also room for new funds based on more positive sustainable investment themes.

Levels of transparency also need to improve: EIRIS’ and the European SRI Transparency Code are both designed to help with this – and there is considerable scope for funds to evolve further to reflect the concerns of investors.

Over the last 30 years, millions of investors across the world have supported ethical investment by investing in funds which have driven improvements in corporate behaviour and acted as a catalyst for change in financial institutions by championing the advantages of long-term, sustainable investment.

Looking ahead, there is scope for ethical funds to achieve much more. EIRIS will be examining some of the key issues identified in the FairPensions report and explore ways to make ethical investment bigger and better in 2013. We invite you to join the conversation.

Mark Robertson is head of communications at EIRIS and editor of

Further reading:

FairPensions publishes ethical investment responsibility ranking

Ethical funds ‘exposed’ or the lesser of 3,000 evils?

The growing appetite for green and ethical investment

Ethical and sustainable: what’s the difference?

The Guide to Sustainable Investment 2012 (NEIW edition)


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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