This is an initiative encouraging all savers to donate 0.25 per cent of their savings to not-for-profit projects targeted at environmental regeneration.
Chellman states: “At their best, many of today’s ESG strategies merely minimise harm on the environment. Embracing directly regenerative strategies increases the likelihood of real and identifiable results for the planet.
“Doing so is also a rational investment strategy – all investments are less risky when we enhance and protect the biosphere.”
He says ESG investors are ready for innovation – for thinking out of the box about how to deliver the best impact for the planet. “Incorporating a small contribution to climate not-for-profit work into an overall ESG strategy for example, goes beyond traditional ESG to support truly regenerative solutions,” he adds.
It is clear that ESG is a hugely broad and nuanced area of investing. Its potential can often be masked by greenwashing, offloading responsibility for change-making between different parties, and current regulatory limitations.
Not to mention there is still a limit in terms of knowledge and understanding of what exactly is needed to improve ESG investing for all parties.
However, there is hope. By keeping dialogue open, each stakeholder playing their part and taking responsibility, and a sociopolitical, collaborative approach between investors, advisers, fund managers, investee companies and policymakers, ESG investing can make a difference – protecting profits, people and planet in the long term.
