Our responsible investment philosophy
IPS Capital aims to be a leader in ESG investments. We began investing in renewable infrastructure in 2016 and have continued to broaden our approach ever since then. When we invest, we seek businesses that are both profitable and sustainable, and are aligned with our clients’ values.
When we build our responsible investment portfolios, we seek best-in-class companies that are champions of specific long-term environmental themes. Examples of how we allocate part of our portfolio to the pursuit of specific sustainability improvements in three categories are:
1. Tackling environmental issues through green bonds
2. Addressing global inequality through micro-lending institutions that help to alleviate poverty
3. Support companies that address gender inequalities in the workplace
We invest predominantly through fund managers who are experts in a particular sector, rather than in individual stocks, and we include investment consultant Mercer’s ESG ratings in all our decisions.
We believe the key to ethical investing is screening and there are two methods to assess the quality of a prospective ESG investment – positive and negative.
This is the more popular method and involves the avoidance of firms or funds that engage in nefarious practices, such as arms dealing or the production of fossil fuels.
This takes the process a step further by pursuing investments that seek to make a difference on themes such as clean energy, gender equality or carbon offsetting.