Jan/11 - Invest this year’s ISA allowance and reduce your carbon footprint
As we approach the end of the tax year the traditional ISA season is looming where you can invest up to £10,200 into a stocks and shares ISA.
It is important that any ISA investment is made in a way that you are comfortable with the level of risk that you are exposed to.
Simple Solutions always work with clients to make sure that they invest in the most appropriate funds.
We are being asked more and more about funds that invest in a socially responsible way.
Socially Responsible Investments very simply are made with funds or individual stocks where the institution encourages better environmental and social policies.
One way of doing this is by reducing your carbon footprint
A carbon footprint is a measure of the impact our activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating and transportation etc.
There are many ways that you can reduce your footprint, you can:
- Turn down the central heating
- Fill the dishwasher and washing machine with a full load
- Turn off the lights when you leave a room
- Use energy saving light bulbs
- Insulate your water tank
You can also offset your carbon emissions by planting trees.
One of the biggest contributors to your footprint is your car
The average CO2 value for car transport in the UK is 1112kg per year (source DECC Nov 2009)
So, how will investing in an ISA help reduce your footprint?
Simple Solutions have access to a fund that invests in a Carbon Optimised UK 350 Index that has been created by FTSE International.
All companies in the FTSE 350 Index are researched for their carbon intensity data. The fund then invests a higher proportion into the more carbon efficient companies in each sector and reduces the proportion into the most inefficient companies.
The objective is to reduce the CO2 that the investment is responsible for compared with the standard FTSE 350 index.
In comparison with the FTSE 350 index the fund’s carbon footprint is reduced by 1150 kg pa(source Trucost plc 2010).
If you would like to arrange a meeting with one of our Advisers to discuss how we can help you please contact us.