This year, I celebrate 25 years as an ethical investment specialist. Over the festive season of 1999/2000 I had my own ‘millennium moment’ that shaped the rest of my career. In January 2000, I took a step into the nascent world of ethical investment.  

Those 25 years have spawned a whole dictionary of terms for describing elements or activities of the sector such as sustainable, responsible and impact etc. – but I’m still happy to call it ethical. For me it’s about investing money rooted in values. 

25 years on, against the backdrop of the inauguration of a US President seemingly intent of turning back the clock, it might seem as though this was all for nothing. However, if those 25 years have taught me anything it’s that change is constant and that our investments can make a change in our world. Ours is a sector that has constantly innovated and grown. What was once a small niche is now an acknowledged sector, worthy of attention from government, regulators, industry and an increasing proportion of the public and even my peers in the advisory community. 

Much as we see the dismaying sight of ‘tech bros’ kissing the ring of the President, we will also see large investment houses dropping out of industry forums on climate change and the like. These are however, signs of expediency for short term gain or fear of US led litigation on matters of ESG (environmental, social and governance) investment challenges. Many of those dropping out are ‘Johnny come lately’s‘ who only entered the market around 2019 when they thought there was money to be made. 

Even today, our sector of ethical/sustainable/responsible investing is a fairly small proportion of global financial markets. However, its impacts are far reaching and the consideration of ESG factors as a risk assessment tool is now well entrenched in many conventional investment models. So it’s started to upset some people, to which I say – good. 

Right now, sentiment and economic conditions are against many of the investments that you hold, despite the many social and environmental goods that they are doing or that they are profitable businesses. It’s probably the toughest investment environment that I have seen in those 25 years. Nonetheless, businesses held in investments recommended by Ethical Futures are currently innovating on energy efficiency, addressing safety, diversity and equality in the work place, researching and supplying developments in healthcare, improving access to finance and of course, generating renewable energy. The business case and economic tipping point for these activities have been reached. Tides will turn and investment returns will come through, as they have before.  

Ours is a sector of progressives. We set the agenda, we innovate,we advocate for change, we take risks and we invest for the benefit of all rather than our own short term gain. Tempting as it may be to wallow in despair, this is not the time to cut and run, invest in big oil or bitcoin or put the money under the mattress. 

If you believe, as I do, that we can create a fairer and more equally prosperous world and that our money has a part to play in that journey, then this is the time to advocate for a sustainable future. Talk to your friends and colleagues, tell them why you invest ethically and explain that it’s not just about the financial return (though that can be good) it’s about influencing corporate behaviours and making money available to innovators to improve the world that we live in. 

If there was ever a time when our business motto was more appropriate – it’s now; 

Make your money change your world.