Episode #42 - Put your money where your mouth is


 

The Better Business Show, in association with Triodos

 
 
 

Show notes

To Mark Good Money Week, Triodos has carried out a new survey into ethical and social investment. And the good news is that more than 60% of UK investors would like their money to make a positive contribution to society and the environment.

However, according to the survey, many people struggle to find options for socially responsible investments (SRI).

  • 62% say they would like their money to support companies which are both profitable and make a positive contribution to society and the environment.
  • More than half (58%) think that people should invest their money where it can support companies that make a positive contribution to the planet and society.
  • 47% believe that companies trying to make a positive contribution to society and the environment are likely to succeed in the long term.

But here’s the rub. 51% have never been offered the option of investing in SRI funds.

The SRI retail market is now worth over £15 billion in the UK – up from £12.2 billion three years ago; the demand for more responsible and impactful investments is clearly there.

But most investors have not been offered sustainable and ethical investment opportunities, and 46% would not know where to go to find out more about them.

The survey findings also challenge a perception that ethical funds are less profitable than mainstream investments, as survey respondents see investing in sustainable and ethical funds as ‘smart investment’ and nearly half (47%) believe that companies trying to make a positive contribution to society and the environment are more likely to succeed in the long term.

Indeed, over the last three and five years, the FTSE All World (which excludes fossil fuel companies) has outperformed the FTSE All World index. And this year, the MSCI SRI index has outperformed the MSCI World index (YTD).

It's a point we made during Episode #7 of the Better Business Show when we spoke to Ian Monroe at Etho Capital. And it's clearly a trend that shows not sign of slowing down.

The purpose of Good Money Week (which kicked off yesterday and runs until 5 November) is to raise awareness of sustainable, responsible and ethical finance – and to point people in the right direction.

This week, I caught up with Simon Howard – the chief executive of the UK Sustainable Investment and Finance Association (UKSIF), the organisation behind Good Money Week – to find out more.

Enjoy the show.

You can find out more about Good Money Week here: www.goodmoneyweek.com. And the website for UKSIF is here.

 


 
 

As part of Good Money Week, Triodos is really demonstrating the positive impact of socially responsible investing. There are plenty of options for you to put your money where your mouth is. If you like the idea of your cash playing a truly positive role in society and in supporting environmental change, then take a look at the Triodos offering – go to the website triodos.co.uk/goodinvestments for more information.


Episode #39 - What's the point of banking, anyway?


 

The Better Business Show, in association with Triodos

 
 
 

Show notes

Since the economic crash of 2008, the world’s financial institutions have been desperately rallying to regain public trust and restore their licence to operate.

As we know, the recklessness of some banks triggered a disastrous string of events – many of which have been played out, illustrated and re-enacted by books, articles, plays and films during the last 8 years.

The practices of those institutions in which we put our trust, our faith – and our money – to use it wisely, has, quite rightly, been put under a microscope like never before and has encouraged more and more of us to question the purpose of banking.

I bank with HSBC. I have done all my adult life. I remember going into my local branch (it was called The Midland Bank back in the 1990s) when I was 16 having started my first Saturday job, filling in some forms and waiting for my cheque book and bank card to arrive in the post the following week. It was such an exciting moment in my young life. 

But never did I once question whether I could trust that bank to take care of my money. Never did I ask where that money would be spent while I entrusted the bank with it.

As I say, I’m still an HSBC customer, for both my personal and business accounts; the rigamarole of switching accounts has always put me off. I’m not disgusted by what HSBC stands for – in fact, in some areas, like its investment in climate research, it is showing leadership – and so I have remained as a loyal customer.

But perhaps where we keep our money needs to be challenged once in a while.

And, this month on the Better Business Show we have a perfect opportunity to do just that. 

What’s the point of banking? What can financial institutions, with all their power and influence, do to help create a better, fairer and more sustainable world?

This week, we spend some time with Bevis Watts, the UK managing director for Triodos Bank, a company which believes that banking can be a powerful force for good: serving individuals and communities as well as building a more sustainable society. 

The businesses uses its €12 billion of customer deposits to generate social, environmental and cultural value in a transparent and sustainable way. Triodos isn't just a bank: its changing the way banking is done. And its customers – some of which we are going to be meeting in the next few weeks on the show – are helping to build a movement that’s cultivating positive social, environmental and cultural change.

You can find out more about Triodos and the way it conducts its business, at triodos.co.uk – where you can also find out just what sort of companies, organisations and projects it is supporting right now.

Enjoy the show. And, as ever, let us know what you think.