The price of conscience: arguments for ethical out-performance

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Previously, Quintin Rayer introduced sustainable (environmental, social and governance, or ESG) investing, looking at different approaches including fund selection. This article is the first of two considering the ‘price of conscience’, challenging the view that ethical investments may underperform.  Here, logical arguments to expect ethical out-performance are explored, a future article will review studies of actual performance.

This article is the seventh in a series making up a helpful introduction to ethical and sustainable investing for IFAs unfamiliar with this topic.  The previous articles can be found here:

  • Q G Rayer (2017), Why ethical investment is crucial and not just ‘nice to have’, DISCUS, available at http://discus.org.uk/7831-2/, 3 pages, 27 July 2017.
  • Q G Rayer (2017), An introduction to ESG investing (for advisers with ethically-minded clients), DISCUS, available at http://discus.org.uk/sustainable-investing-and-its-focus-on-egs-factors/, 3 pages, 23 August 2017.
  • Q G Rayer (2017), A brief history of ethical investing, DISCUS, available at http://discus.org.uk/brief-history-ethical-investing/, 3 pages, 19 September 2017.
  • Q G Rayer (2017), Approaches to Ethical & Sustainable Investing: Screening and Best-in-Class, DISCUS, available at http://discus.org.uk/approaches-to-ethical-sustainable-investing-screening-and-best-in-class/, 4 pages, 26 October 2017.
  • Q G Rayer (2017), What is ‘Tilting’ and ‘Influence and Engagement’ in sustainable investing? DISCUS, available at http://discus.org.uk/approaches-to-ethical-sustainable-investing-tilting-and-influence-and-engagement/, 4 pages, 20 November 2017.
  • Q G Rayer (2018), Selecting funds for ethical and sustainable investment, DISCUS, available at http://discus.org.uk/selecting-funds-ethical-sustainable-investment/, 3 pages, 11 January 2018.

Q G Rayer (2018), The price of conscience: arguments for ethical out-performance, DISCUS, available at http://discus.org.uk/price-conscience-arguments-ethical-performance/, 4 pages, 22 February 2018.


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