News and Analysis | Written by Ben Morling, Guest Author, 25 January 2023

Green finance discussions at the Better Business Summit

This week we have a guest blog from Ben Morling, Account Manager at High-Rise Communications. Path work with High-Rise Communications on PR and communications, making sure our messaging is clear and being heard by the right people.

Last week, I was lucky enough to attend the Better Business Summit. This was a positive and well attended event which took place in Manchester, with hundreds of ethically focused businesses discussing how we can do better and make more sustainable choices.

Working with Path Financial, a big focus is as you might expect on green and ethical finance. Learning more about what drives people to making better choices when it comes to their money and making sure we are including that in our messaging.

The Better Business Summit ran a “Put your money where your mouth is” workshop, which included representatives from Make My Money Matter, Algbra and Praetura. The discussion centred around how businesses can maximise their impact by choosing the best ways to invest their money. With a focus on pension investment and new fintech technology, the session provided valuable learning about what consumers and businesses are looking for when making ethical financial decisions.

Here are some of my takeaways:

The demand for green pensions and investments is there
On the topic of green pension investment, there was a clear theme. All the attendees were interested in making better choices when it came to making an ethical pension choice, but most weren’t sure how. While this may not reflect a true sample size due to the nature of the summit itself, it showed a desire for people to make a change. It is clear from this conversation that more needs to be done to make people aware of the options they have when it comes to green pensions.

There is a need for greater transparency about where money is being invested and the harm or good it may be doing
A similar point was raised by several business owners in attendance. While a lot of pension providers offer what they claim to be sustainable pensions, it was argued that none of them offer true transparency with regards to what your pension is being invested in. A great point was made from members of the audience, who rightly argued that as the money invested is the person’s own money, they should have a right to more transparency in regard to what it’s invested in and the harm or good it is doing.

People in the room agreed that there needs to be a concerted effort to push pension providers to be much clearer about where people’s money is being invested, and for employers to be more thoughtful about their workplace pension choices. Providing more transparency allows people to make an informed choice, giving people the power of investing their money into causes that align with their values.

Green pensions and funds and long-term return on investment
Several questions were raised as to the difference in return on investment in fossil fuel and unsustainable options as opposed to ethical and green investments. While traditionally unsustainable industries have seen a better return on investment, the shift to more sustainable options, coupled with sustainable energy now being cheaper than fossil fuels, means that won’t be the case moving forward especially as more companies and countries adopt the need for net zero solutions. Ethical pension investments already offer a competitive return on investment, and this will only rise with the increasing infrastructure and shift towards a more sustainable future.

Get in touch to find out about how our Positive Impact Funds are contributing to a greener future while also protecting your returns.

If you’re a business owner interested in finding out more about green pensions for the workplace, click here.

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

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