Which Sin Stocks Do UK Equity Funds Own?

Looking to invest sustainably? ESG-related mishaps have a significant and long-lasting impacton companies’ financial performance

Muna Abu-Habsa 12 August, 2016 | 9:34AM
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Sustainable investing is generally depicted as a concept that is implemented through specialist mandates: that is, those which explicitly express a commitment to sustainability objectives. As a result, investors have developed a polarised view of investment strategies–sustainable versus mainstream.

This is not only because funds are often marketed that way, but the language cited in investment literature, where terms such as ethical, socially conscious/responsible, sustainable, mission-based, green, ESG, and so on are used interchangeably, has left those funds lumped into an undifferentiated mass.

Taking a bird’s-eye view, sustainable investing is a long-term approach that captures the environmental, social, and governance, or ESG, disciplines of companies. It has very little to do with ‘negative screens’, instead focusing on the behaviour of companies in areas such as product safety, climate change and carbon emissions, board composition, gender and diversity in the work place, executive compensation, energy efficiency; to name but a few. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC179.40 GBP0.00Rating
GlaxoSmithKline PLC1,407.40 GBP0.00Rating
Royal Dutch Shell PLC B1,393.60 GBP0.00Rating
Sage Group (The) PLC668.40 GBP0.00Rating

About Author

Muna Abu-Habsa  is a senior investment research analyst at Morningstar

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