Positive products and services
The issue
Many investors are interested to know whether the product or service provided by a company contributes positively to society and the environment.
There may be different views about what products or services should be regarded as positive, and factors such as production and supply could also be considered.
If a company’s products and services are something a charity regards as being a good thing, then it may feel the growth and prosperity of the company concerned has a positive impact. This could be because its products and services meet an important need, improve quality of life, make the world a safer place or provide a solution to a social or environmental problem. These can include:
- environmental technology, including products such as machinery for recycling, wind power generators, and pollution abatement technology
- waste disposal companies
- public transport and bicycles, including provision of bus services and maintenance of railway tracks
- safety and protection, for example alarm systems for elderly people living alone, fire alarms, life jackets and protective clothing
- healthcare, including medicines, hearing aids and spectacles
- housing, food and clothing
Its relevance for charities
These issues may be of relevance to all charities, particularly those wishing to invest to further their mission. It may be of particular relevance to environmental, housing, health and transport focused charities.
Incorporating the issue into investments
These issues can be incorporated into investments through positive screens. It could be possible to support companies involved in activities such as
- waste disposal
- public transport
- safety equipment
- healthcare
- food, clothing or housing
- environmental technology
The extent of a company’s involvement in such activities could be measured by the proportion of turnover they derive from the activity.
There are some examples of pooled investment funds that seek to invest in positive products and services – for example social housing funds or environmental technology venture capital funds.
