What is responsible investing

Responsible investing is about more than just financial returns. It means thinking about how your investments affect the world around us, both now and in the future.

 

What is ESG?

ESG factors help investors understand how well a company is managing its responsibilities and its risks.

Environmental

How a company interacts with the natural world, including its carbon emissions, use of resources and impact on biodiversity.

Social

How a company treats people, like human rights, working conditions and diversity and inclusion.

Governance

How a company is run, including leadership accountability, board structure and transparency in reporting.

Reasons to invest responsibly

Make a positive impact

Responsible investing can allow your money to grow while having a positive impact on people and the planet. It also gives you an opportunity to align your money with your values.

For example, by avoiding harmful activities or sectors, or by seeking investments in companies committed to ethical and sustainable goals.

Increasing awareness

More people, businesses, and governments are recognising the importance of ESG issues.

From climate change to data security, these challenges are shaping the way we invest. ESG investing has grown rapidly, surpassing $30 trillion globally in 2022 and expected to reach over $40 trillion by 2030.

Bloomberg Intelligence, 2024.

Resilient investments

Responsible investing can help protect your money from certain risks, like companies that aren’t managing their environmental or social responsibilities well.

It can also offer opportunities for growth by investing in businesses that are leading the way in sustainability and innovation.

Our commitment

At Lloyds Banking Group, we’re playing our part to build a sustainable and inclusive future through the investments we make.

We’ve set several targets for sustainable finance and investments to support the decarbonisation of our business.

We've committed £30 billion to sustainable finance in commercial banking by 2026. We aim for a 50% reduction in carbon emissions linked to our lending activity by 2030.

In our pensions business, Scottish Widows achieved its cumulative investment target of investing £20 to £25 billion in climate-aware strategies by 2025. £25.9 billion was invested by the end of 2024. This plan supports its goal of halving financed emissions by 2030 and achieving net-zero emissions by 2050.

Understanding the FCA’s sustainability labels

To help you choose sustainable investments, the Financial Conduct Authority (FCA) has introduced four labels for UK-based funds. These labels show how committed a fund is to achieving positive outcomes for people and the planet. To earn a label, funds must meet strict criteria. This helps protect you from “greenwashing” - when something is marketed as more sustainable than it really is.

Focus

Funds investing in companies that are environmentally and/or socially sustainable.

Improvers

Funds investing in companies with the potential to improve their environmental and/or social sustainability over time.

Impact

Funds investing in companies that aim to achieve a positive, measurable impact on the environment and/or society.

Mixed Goals

Funds investing in a mix of companies that are already sustainable, have potential to become more sustainable, or aim to achieve a positive impact.

Explore responsible investing options

 

Funds Centre

Match investment options to your goals and preferences with the Funds Centre.

The ESG filter tool helps you find UK-based funds that meet different sustainability goals. These funds are approved by UK financial regulators, so you can invest with confidence.

Funds Centre

Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. If you’re not sure about investing, seek financial advice. There will normally be a charge for that advice.

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We’ve created a simple five-step guide to help you decide if investing works for you.

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Understanding risk

Understand what investment risk is and how to manage it for your investments.

Understanding investment risk

Protecting your money

FSCS logo


Investments with Bank of Scotland Share Dealing are protected up to a total of £85,000 by the Financial Services Compensation Scheme. This limit is applied to the aggregated total of any stock or cash held across the following brands which we administer.

This is in addition to any other savings deposits you may hold across Lloyds Banking Group.



Protecting your money

FSCS logo

Investments with Bank of Scotland Share Dealing are protected up to a total of £85,000 by the Financial Services Compensation Scheme. This limit is applied to the aggregated total of any stock or cash held across the following brands which we administer.

This is in addition to any other savings deposits you may hold across Lloyds Banking Group.

Investing with Bank of Scotland

Whether you have investment experience or not, we're here to help.

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Investing with Bank of Scotland

Whether you have investment experience or not, we're here to help.

Investing homepage

Important legal information

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.