Tim Clipstone, Partner with Ogier's Guernsey Investment Funds team in
Guernsey, says the Guernsey Green Fund could be an ideal model to
boost green and ethical investment.
Until recently, ethical investing was seen as an expensive fad,
sacrificing returns for principles. However, the fad has not gone
away. In fact, it seems to be gaining in validity and attracting
increasing amounts of investment capital.
There is also mounting evidence that investing in companies that
are actively working to improve the environment and society, and
those that are operating according to good governance principles
(collectively called ESG investments), over the long term is
producing returns which match more traditional strategies in
"sin stocks" such as companies producing tobacco, guns
and alcohol. Many mainstream banks and large fund managers now have
an ESG investment strategy platform and asset allocations have
followed.
