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Why I’ll be investing my children’s junior ISA funds sustainably



It’s ISA season, which reaches a crescendo of emails, press adverts and posters in March. This three-month period is the time of year when those wishing to save to can get a nice tax break if they use their annual individual savings accounts allowance. The introduction of junior ISAs in 2011 created a tax efficient saving option to replace child trust funds (CTFs).

The ISA was introduced in 1999 replacing the earlier personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs). All of these products delivered favourable tax rates to encourage personal saving.

ISAs are available in both cash and stocks and shares (or equity) types. Cash ISAs carry little risk as they are unaffected by stock markets and have a guaranteed but arguably lower return. Stock and shares carry higher risk and arguably better returns as they are affected by stock performance. Worryingly, research by the Financial Services Authority (FSA) in 2006 showed that these products are not readily understood. Forty per cent of people who own an equity ISA are not aware that its value fluctuates with stock market performance, and 15% of people who own a cash ISA think its value does.

You can invest up to the limits set by the Treasury each year, every year.

The junior ISA was launched in November 2011 to replace the CTF which had been launched in 2005. UK resident children under the age of 18 who were born after January 3 2011 or do not have a CTF can have an investment made on their behalf. At 18, the junior ISA turns into a normal ISA and ownership passes to the child. You can invest up to £3,600 a year into a junior ISA, and they are designed to be long-term tax free savings accounts for children.

Money makes the world go round 

March 2012 saw the Office of National Statistics (ONS) report that stocks and shares ISAs (£15.837 billion) had overtaken pensions (£14.28 billion) as the primary savings vehicle for the first time in a decade.

Some £54 billion was invested by 14.2 million investors in ISAs (cash and stocks and shares) last year (2011/12) and a similar or greater sum will be this year (2012/13). A total of £115m was invested in junior ISAs from its launch in November 2011 to April 2012. By the end of April 2012, the value of adult ISA holdings stood at £391 billion.

There is a huge opportunity to invest in the kind of future your children will actually want to live in.

What you invest in will create the future your children inhabits

A child born in 2012 will get control of their ISA in 2030. It will be a very, very different world to the one we have lived in over the last 18 years.

According to UN estimates in January 2012, it is predicted that by 2030, the world will need 50% more food, 45% more energy and 30% more water. According to Al Jazeera, Saudi Arabia will have no more oil to export.

The world’s population will be between 8-9 billion, up from 7 billion today and having grown by 1.4 billion in the previous 18 years. The UK’s population will have reached 70 million, up from 62.6 million during the 2011 census.

Food, energy, housing and water, plus an ageing population, will be placing severe strains on the economy and environment within and across borders. Civil society will be under similar pressure if voting turnout continues to plummet, the gap between rich and poor continues to grow and the cost of everything begins to rise as we reach the limits of growth.

And we will be experiencing the real effects of climate change. Our children may not thank us if we invest in things today that make their tomorrow poorer, dirtier and more uncertain.

Invest in the future they would want and you would want for them

Almost every investment ultimately invests in companies. Companies that make and sell things. Some of them are sustainable and positive; some unsustainable and destructive.

If your ISA is invested in tobacco, gambling, pornography, the arms trade, human rights abuse, fossil fuels and mining, don’t use an excuse if your children ask you why there is so much abuse, violence, misery and death in the world. It’s what you invested in.

That’s why I’ll be applying some negative screening against tobacco, gambling, pornography, the arms trade and human rights abuse. I’ll also be positively screening in sustainable agriculture and forestry, renewable energy, clean and water technology, sustainable housing and medicine.

If you are worried about the future your children will inherit and if you want what you invest to create a better future, then choose your investments wisely:


– Move Your Money:

– Ethical Consumer:


– The Guardian (2012):

– This is Money (2012):

Self-directed investment is not for everyone. Fortunately help is at hand. Blue & Green Tomorrow has interviewed a number of specialist ethical financial advisers in the past, and they’re located all across the country. Have a look here to find the one nearest to you.

If you’re tackled by an financial adviser or banking professional over an ethical fund’s performance, tell them to look at this. They are simply misinformed and don’t care about your children’s future.

That’s why I’ll be investing my children’s Junior ISA funds sustainably. If you love your children (or grandchildren), and I’m sure you do with every fibre of your being, you should too.

Further reading:

Are we investing in the future we want for our children and grandchildren?

What is an ISA?

Junior ISA debuts November 1

The Guide to Sustainable Investment 2012 (NEIW edition)

Simon Leadbetter is the founder and publisher of Blue & Green Tomorrow. He has held senior roles at Northcliffe, The Daily Telegraph, Santander, Barclaycard, AXA, Prudential and Fidelity. In 2004, he founded a marketing agency that worked amongst others with The Guardian, Vodafone, E.On and Liverpool Victoria. He sold this agency in 2006 and as Chief Marketing Officer for two VC-backed start-ups launched the online platform Cleantech Intelligence (which underpinned the The Guardian’s Cleantech 100) and StrategyEye Cleantech. Most recently, he was Marketing Director of Emap, the UK’s largest B2B publisher, and the founder of Blue & Green Communications Limited.


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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