SUSTAINABILITY OF INVESTMENTS

You may have heard people talking about sustainable or socially responsible investing. This is investing which considers both the financial aspects – will the investment achieve an acceptable investment return in relation to inflation? As well as the potential impact of the investment on broader society.

In 2019, the Financial Sector Conduct Authority (FSCA) released a guidance notice on the sustainability of investments and assets in the context of a Fund’s Investment Policy Statement. A guidance notice, simply put, is there to provide guidance to Boards of Trustees on how best to comply with the applicable legislation. The legislation in this case is the need to consider Environmental, Social and Governance aspects which are contained in Regulation 28.

The definition of “sustainability” in this notice, is the ability of an entity to conduct its business in a manner that primarily meets existing needs without compromising the ability of future generations to meet their needs.

SUSTAINABLE DEVELOPMENT GOALS

During 2015, all United Nations Member States adopted “The 2030 Agenda for Sustainable Development” which in their words provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. Read the full article