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Investor coalition calls on companies to report human rights risks

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Investors from across the globe, with $3.9 trillion (£2.5tn) of assets under management, have urged companies to use a new guide to help them report human rights risks. The investors point out that human rights abuses can be financially material, as well as an ethical issue.

The call comes as the UN has published a new Principles Reporting Framework, which acts as a guidance for companies to report on human rights in line with UN Guiding Principles.

The investor coalition, led by Boston Common, includes investors from Europe, North America and Australia. The group notes that companies that do not proactively assess and manage human rights issues face potential legal, reputational and other financial risk, whilst those who act can gain a competitive advantage.

Investors urging companies to embrace the new framework include Aviva Investors, BNP Paribas, F&C Investments and Alliance Trust.

Lauren Compere, managing director at Boston Common Asset Management, said, “Ultimately investors want to protect value by knowing human rights risks are being monitored and managed by the companies they invest in.”

She continued that the new tool provides “smart and comprehensive” guidance that means investors can identify and understand the human rights risks their portfolio may be exposed to.

“We hope [the tool] will encourage more investors to engage with companies on human rights as investors can now say to their investee companies – ‘please use this guidance as a straightforward way to start improving your controls and disclosure on human rights’,” Compere added.

Globally responsible investment is growing, reaching $21.4 trillion in assets last year, a 61% increase over a two-year period. Polls have revealed that investors often cite companies that have human rights abuses as their biggest concern and amongst businesses they want to avoid investing in.

Last year, investors with a total £195 billion in assets under management called for Transparency in Supply Chains legislation to be embedded in the UK modern slavery bill. The group of investors argued that human rights abuses not only present ethical concerns but also place financial returns at risk.

Speaking about the new tool, Steve Waygood, chief responsible investment officer at Aviva Investors, commented, “There is no question that human rights issues are frequently material to the financial performance to many companies. Long-term investors want to be able to benchmark corporate performance in this area, however, this is not at all easy to do.

“This reporting framework is a very welcome step in absolutely the right direction. It provides companies with helpful clarification and guidance. This is invaluable given the recent growth in reporting requirement on human rights.”

Photo: eastop via Freeimages

Further reading:

Framework launched to boost human rights awareness among investment firms

Investors call for supply chain transparency legislation in UK modern slavery bill

Investors welcome US act to combat slavery and human trafficking

Investing for the past or investing for the future?

The Guide to Sustainable Investment 2014

Energy

Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long will my retirement savings last?”

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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How to make a sustainable living out of Forex Trading?

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sustainable forex trading
Shutterstock Licensed Photo - By Robert Kneschke | https://www.shutterstock.com/g/robertkneschke

There are two different types of forex trading in general: the profitable one and the not so profitable one. Everyone wants good profits at the end of the day, but unfortunately a good number of traders are burdened with the huge losses at the end of their forex careers. Many newbies run the other way around when they hear about forex trading due to heavy losses in their initial period. Of course, you would have heard about all those success stories, in your friends’ circle or on the internet. However, if you are looking forward to replicate those success stories, you need get yourself ready before that.

In this article, we will discuss the six essential skills that are needed to earn some profits from trading foreign currencies and make a sustainable living out of it.

1. Limit your risk ceiling

When you start with forex, you should try to define limits. Try to create a balanced scorecard that defines your personality with regards to various parameters such as your strengths, weaknesses, behaviors, and ability to take risks. It is essential that you list your financial goals before you start with forex trading.

2. Learn about leverage ratio and account type

When you start, brokers will suggest different forex trading accounts that might take you for a whirl if you aren’t prepared. Each forex trading account has its own pros and cons. It is essential that you engage with your broker to create a mini trading account so that you will be able to warm up on your forex trading skills in a low risk environment.

3. Start small

While starting out, some investors rush to have multiple currency pairs without doing proper research on them beforehand. It is very important have you understand the nature and volatility of a currency before you start trading a pair. Every single foreign currency is like a market onto itself. It is therefore important that you take the time to study about the country before forming pairs to understand the volatility of the currency. By using forex trading platforms such as ETX Capital, you can take informed decisions easily.

4. Learn to control emotions

A forex trader should never take any decisions on the spur of the moment based on emotions and should be as rational as he can. Controlling your impulses is the key to becoming a great forex trader.

5. Automate your processes

I am not suggesting you to rely completely on forex robots and trade copiers, but make use of the latest automation tech to execute transactions faster than ever before. Make use of automation features such as stop loss, price options etc. to make the most out of the exciting opportunities.

6. Keep it simple.

Not everyone can be a genius economist, mathematician and a trader, bundled into one. Forex trading is not a complex subject, you only need to arm yourself with positive thinking, and set yourself clear and realistic goals.

Conclusion

I hope this article was useful for you to learn about the key reasons why online forex trading is a good investment and how you can earn money through it. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.

Though it’s a reliable source of income, you will have to educate yourself properly before you start investing. It is important that you take the time to understand why things are the way they are before you jump all in and start making your first big bucks. All the best for your future ventures and keep coming for more interesting and useful articles.

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