New Responsible Investment research tools launched

19 October 2021

Royal London has teamed up with Square Mile Investment Consulting and Research to help advisers navigate the range of Responsible Investment research solutions available to them.

The duo have produced a series of educational videos and guides designed to cut through the jargon and offer advisers practical support in understanding where their client preferences lie.

The materials provide an overview of the four overarching principle approaches to Responsible Investment.

These include:
• ethical exclusion funds which avoid businesses or sectors that do harm to society or the planet;
• responsible practices funds which consider the operational practices of the companies they invest in;
• sustainable solutions funds which actively seek to invest in companies that provide solutions to social and environmental challenges; and
• impact investing funds which aim to make a wider measurable positive social and environmental impact.

The range of materials are free to access via the Royal London website.

Steve Kenny, chief distribution officer at Square Mile, said: “Funds which are aimed at making a better planet for all, whilst tackling some of the greatest challenges society has ever faced have become a mainstream investment option.  However, we acknowledge that the funds industry has some way to go in establishing a common terminology framework to address any confusion among advisers and their clients.

“Royal London is highly-regarded in the field of Responsible Investment and the clarity it uses around its proposition is widely recognised by advisers.  We were therefore delighted to partner with them in the production of these videos and guides to counter any misunderstanding and to encourage greater participation in Responsible Investment solutions.”

Ryan Medlock, senior investment development manager at Royal London, commented: “One of the most striking observations is that advice firms are all currently at very different stages in the adoption of Responsible Investment within advice processes.

“We’re delighted to collaborate with Square Mile in this area and tap into their unrivalled expertise of both the advised market and Responsible Investment. The material produced will not only support advisers’ understanding of different Responsible Investment approaches, it’ll also help them embed Responsible Investment considerations within existing fund research and due diligence processes to combat the evolving threat of greenwashing.”

Professional Paraplanner