For many of us ethics are now a regular part of spending decisions, from scrutinising the price of a pint of milk to making an informed choice about which shops we buy our clothes from. But when it comes to money matters, exactly how “ethical” are you? Finding out where your bank puts your savings might not be a top priority, but the growth of ethical-investment firms is providing an alternative for those of us who want to pay more attention. Abundance Generation is an ethical-investment company based in Shepherds Bush that offers a way for customers and renewable-energy suppliers to mutually benefit. So how does this form of ethical investment work?
Climate change may be on your mind, especially in recent weeks, so helping to fund renewable UK energy projects whilst getting a return on your investment could seem like an attractive prospect. Abundance Generation links up ethically minded investors with ventures looking for funding as well as already established projects. They aim to offer a new venture every three to four months, with initiatives covering solar, wind, anaerobic digestion and hydro. Investment is in the form of debentures which are represented by a contract of a loan you have made to a company—it can pay back a return on your investment every six months, as opposed to stocks and bonds which might pay out every year. Debentures aren’t listed on the stock exchange and so do not fluctuate with the markets; if you’re already investing, this could be a different way to vary your portfolio.
One example of a funded project is Resilient Energy Great Dunkilns, a turbine situated near the Forest of Dean. Not only is the initiative predicted to generate annual returns of up to 8 percent for its investors, but it has also established a community fund to identify and help specific local needs.
Although making your money work for you is always going to be a large motivating factor when investing in anything, ethical investing could offer a new dimension to your financial management—putting your money in ventures that are close to your heart can reap more than just monetary rewards. Climate change is a contentious issue, but there’s no denying that there is pressure on politicians to put it higher on the agenda. In this context, there could be a future demand for renewable-energy resources, meaning ethical investment in UK renewable-energy projects might well be a smart move.
Of course, there is always risk when it comes to any sort of investment, so make sure you do your research first. What ethical investing does represent is an alternative to traditional stocks, bonds and banks—many of which haven’t recently received much favourable press for their “ethics”.
For more information on how you can put your money towards renewable-energy projects in the UK, visit the Abundance Generation website.
About the author:
Anna Scott is a freelance writer, parent, procrastinator and Hammersmith resident. When she’s not attempting to write her first young adult fiction novel, in between reading and reviewing the odd book or two, she can be found chasing after her two little girls. In a previous life she was a politics graduate and wine trade lackey. Head over to Anna Scott Jots to find out more…