Good Money Week: An opportunity to ‘build back better’

Quilter Cheviot's Claudia Quiroz identifies three companies fighting the challenges we face as a society

Good Money Week is an ideal opportunity to remind retail investors that they too can help ‘build back better’ by investing in the companies that offer innovative solutions to the greatest challenges faced by society.

Every year, consumer awareness of the climate crisis and resource scarcity grows stronger and more and more want to make their money work for good by choosing positive and sustainable investment options.

But in this year of all years, there is even more urgency to back those companies driving positive change given we currently face one of the greatest challenges we have seen in a generation. This Good Money Week, retail investors have a vital part to play in facilitating capital to those companies providing innovative solutions to the ongoing global health crisis.

In the long-term too, policy makers have sensed an opportunity to reconcile their economic recovery strategies with their net zero ambitions. Many have vowed to ‘build back better’. Retail investors would be wise to go with the grain of government policy and chose an investment option that will contribute to a greener, more sustainable economy in the years to come.

Furthermore, the myth that investing with a conscience means sacrificing returns has been dispelled. There are a great many companies and investment funds on offer with a sustainable tilt that have outperformed their peers, and many of these don’t cost the earth.

But while responsible investment must involve investing in good companies, not all good companies make money, so it is important to remember the fundamentals of stock selection to be able to navigate the economic cycle. As always, diversification is key.

Here are three companies that are contributing to the challenges we face as a society, but also have strong and resilient business models: 

Halma

Halma is a global leader in the provision of health and safety equipment designed to improve the quality of life, particularly in the workplace. Thanks to their flexible and dynamic management, they have been able to respond to the Covid-19 pandemic quickly by adapting their supply chain to provide personal protective equipment (PPE) at scale. It will continue to benefit from tighter health and safety regulations going forward.

EDP Renováveis

EDPR is a Portuguese based utility provider and one of the few listed renewable pure plays in Europe. The company owns and operates wind and solar farms, predominantly throughout Europe and the US. The group currently has around 11GW in renewable capacity and is looking to add a further 7GW over the next few years. EDPR is set to benefit from the world’s move to renewable energy sources and net zero carbon targets.

Thermo Fisher Scientific

Thermo Fisher is a world-leading provider of scientific equipment to the healthcare and environmental sectors and is well placed to benefit from increasing demand for research and development in these sectors as technology progresses. It has a strong presence in the environmental testing market in China and has the best product breadth among its peer group. The company has successfully scaled up its manufacturing to produce Covid-19 testing kit for the UK.

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Natalie Kenway

Natalie is global head of ESG insight for ESG Clarity and has been an investment journalist for 16 years. She won Editor of the Year at the Aviva Investors Sustainability Media Awards 2021, and was Winner...