The companies note that there is “is a level of confusion” around the terminology, aims and suitability of responsible investment strategies, and hope to ‘cut through jargon’ with the material they have produced together.
The material highlights four principal approaches Square Mile has to responsible investment: ethical exclusion funds, responsible practices funds, sustainable solution funds and impact investment.
“One of Square Mile’s guiding principles is to help people to be better informed when making investment decisions. Perhaps nowhere is this more relevant than in making sense of responsible investment” said Steve Kenny, chief distribution officer at Square Mile.
“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.”
Ryan Medlock, senior investment development manager at Royal London, said: “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.
“The material produced will not only support advisers’ understanding of different responsible investment approaches, it will also help them embed responsible investment considerations within existing fund research and due diligence processes to combat the evolving threat of greenwashing.”