Is sustainable and responsible finance possible in a world worth living in?

Green Finance
Written By Richard Erskine

Finance is often seen as being of interest to only the better off, but this is not true. All employers must offer a workplace pension scheme by law. You, your employer and the government pay into your pension. But what happens to that money, and can you have a say in how it is invested?

Is sustainable and responsible finance possible in a world worth living in?  This is the question we wanted to explore in this edition of NailsworthCAN’s ‘In Conversation …’ series.

Tony Anderson and Alena Zavarin, from Anderson Financial Management, explore this question in an engaging and insightful talk, in a conversation with Richard Erskine, Secretary of NailsworthCAN.

You can catch up on the video of the talk here:

We learned what had inspired Tony and Alena to work in the field of sustainable finance.  

There were some really fascinating insights that came from the presentation:

  • The enormous power that our money can have (especially pensions) to reduce carbon emissions (research by Nordea says that moving your pension can be 27 times more efficient to lower your carbon footprint compared to other activities combined).

  • Since a hit to markets in early 2020, green funds have grown by at least 5 times the rate of a typical world wide index. In other words, going green should not be seen as having to accept lower returns; quite the opposite it seems.

The practical advice offered us was:

    • Explore sustainable banking options

    • Consider if you will be eligible for a green mortgage in the future

    • Review your pensions and investments

    • Make conscious financial choices going forward

The recording includes the Q&A session that followed the presentation, exploring some questions from attendees to the event.

Climate discussions often naturally focus on themes such as biodiversity, transport, buildings, etc., but shy away from finance. Perhaps it is a cultural thing in the UK, but it was clear from this discussion we need to take notice.

The simple message that struck home was that we all should understand the power of the pound in our pocket, bank account, savings and pensions, and to exercise that power wisely.

This was a powerful message.

A big thank you to Tony and Alena for their insights.

Disclaimer

NailsworthCAN hosted this talk in order to highlight general information on the potential of greening finances, but this does not constitute advice to anyone’s particular circumstances. We want to emphasise the importance of seeking professional advice before making changes to your finances. The Financial Conduct Authority offers guidance on finding a financial advisor https://www.fca.org.uk/consumers/finding-adviser

Richard Erskine
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