As we head into another new year we often think of improving ourselves in some way, shape or form!
I listened to a very interesting podcast recently “Impactful Environmental Resolutions We Can Make” – by Jo Linehan. This had a particular focus on things we can do to help the environment and reduce the effects of climate change. If we all make some small changes the results collectively can make a real change for good!
These are my top five tips!
- Pick up 3 pieces of litter each day when you are out and about– this is fast and easy and becomes a habit. If more people did this it would make a big difference.
- Use a Reusable cup for your coffee & hot drinks. Stop using plastic cups. Did you know that 22,000 plastic cups are disposed up every hour in Ireland? By doing this you will save money and it’s much better for your health and the environment
- 72 hour rule. Wait 72 hours to buy something online! Resist temptation and leave it in your basket. It’s the purchase we get the “buzz” from not the actual receiving of the goods. Ask yourself do you really need this item? This might be easier said than done but worth a try!
- Try Meat free Monday or go plant based for one meal a week. Eating more vegetables is less impactful on the environment than consuming dairy or meat. It also benefits your overall health.
- Find out where your pension fund is invested (if you have one)? Ask your Financial Adviser or Pension Fund Manager this and check if they have any ethical funds you can invest in? For example a fund with a high ESG rating – see below to find out more.
Can I make a difference through my pension fund?
The answer is yes. Investing in a Green fund (or an ESG fund) is 21 times more impactful than giving up flying (apparently)! It is not necessarily riskier either.
In recent times ethical investing considers ethical or social concerns such as sustainability and climate change as well as, or even ahead of, financial returns in choosing a pension provider or fund.
These funds would typically exclude the following :
- Companies that are involved in fossil fuels, mining, or fracking.
- Companies that carry out deforestation.
- Companies that use child labour.
- Companies in controversial regions.
- Tobacco companies.
- Companies promoting gambling
- Weapons manufacturers
- Fast fashion companies
What is ESG investing?
ESG investing means that funds are ethically responsible in terms of environmental, social, and/ or governance concerns and that these funds do not invest in companies that are, for example, contributing to climate change.
ESG investing may also involve investing in ‘positive’ companies, such as those developing sustainable energy technologies, promoting worker welfare, or supporting gender diversity.
Why ESG matters?
If we all start making better choices around the environment and sustainability then collectively will make a bigger difference.
Research has shown that companies with strong ESG performance are better positioned for long-term success and tend to be more resilient, less exposed to regulatory risks, and more likely to capitalise on emerging trends, especially as the world increasingly values sustainability and ethical governance.
At Sunrise Financial Planning we are committed to helping you create a financial plan that aligns with your values. Whether you’re interested in an Ethical/ESG type fund or investing for the first time, or looking to fine-tune (review) your existing pension investment strategy, our expert team is here to help.
Reach out to grainne@sunrisefinancialplannning.ie to find out how.
