Sustainable Stocks & Shares ISA

Invest in a brighter future for you and the world, with our sustainable ISA. When you invest your capital is at risk.

reviews-io-logo

Total reviews

2504

reviews-stars

Average rating

4.66

Sustainable investing is about using your money to make a positive difference to society, while also aiming to achieve a positive return for you on your savings. The fund invests in companies that are leading the transition to a low-carbon economy or driving social and economic development. 

  • Sustainable Stocks & Shares ISA lets you invest in a way that matches your values of acting responsibly and making a positive difference.
  • The fund aims to invest in innovative, sustainable companies that offer both the potential for long-term growth and a positive benefit to society.
  • All investments are reviewed before they are admitted into the fund, meaning it avoids investing in non-sustainable or harmful investments.
  • We believe in simplicity and fairness, so we’ve been putting the futures of our members first for almost 200 years. 

This kind of funis also known as an ESG investment. ESG covers environment, social and governance, meaning the fund invests in companies that show leadership in these three areas. You can read more about ESG investing below. 

Put simply, an ESG investment fund favours companies that are leading the way in their approach to the environment, society and the way companies do business. Below are just some of the sustainable factors considered when choosing what to invest in. 

Environmental
  • Tackling climate change
  • Cutting down on waste
  • Improving energy efficiency
  • Solving water scarcity
Social
  • Campaigning for human rights
  • Protecting consumer privacy
  • Promoting gender equality
  • Improving health and safety
Governance
  • Making business more ethical
  • Transparent financial reporting
  • Greater accountability of boards
  • Sustainability-linked executive pay 

 

Our Sustainable Stocks & Shares ISA helps you save over the medium to long-term, free from income and capital gains tax. Investments are exclusively made in companies making a positive contribution towards a more sustainable future for society as a whole.

  • With easy, flexible payments, you can save from £30 per month, or make payments online in single lump sums 
  • The ISA is quick to set up and easy to manage online 
  • Aims for better returns than you’d get from cash ISAs and savings accounts
  • The flexibility to pause, top up or change the payments you make, at any time
  • You can open the ISA alongside a Help to Buy, Lifetime or cash ISA, up to your annual £20,000 ISA limit 

Remember, the value of investments can fall. You may get back less than you invest. Tax rules can change, and individual effects vary.

Our sustainable investing benefits from the same careful strategies that have seen our members enjoy steady returns over the past 10 years. 

As a mutual owned by our members, we believe in making sure that everyone benefits. That’s why we created our Sustainable Stocks & Shares ISA; to help us live our values and ensure a better future for everyone. Here are the values our ISA is built on: 

Working together

We understand that by listening to our members and acting on their feedback we can help to build a better society for everyone.

Doing the right thing

We never compromise on our moral standards. That’s why our Sustainable ISA aims to the right thing by you and society. 

Making a difference

We’re committed to helping our members save towards a better future. Our Sustainable ISA helps to make a long-term, positive difference for everyone.

Any money is invested into the Sustainable Diversified Trust Fund, which is actively managed by Royal London, and aims to grow your savings by only investing in companies that make a positive contribution to society. The plan itself is a With-Profits investment with a medium to low risk rating, which aims to smooth the returns for members over the medium to long-term, therefore aiming to mitigate the risks of any sharp falls in the market.
The benefit of this approach is that we aim to provide smoother growth over the medium to long-term, whilst ensuring that our investment managers operate within a framework that focuses solely on innovative investments that have a positive impact on the world we all live in.

Investing responsibly 

With a Morningstar ESG sustainability rating of 5 out of 5, the Royal London Sustainable Diversified Trust Fund has holdings in gilts, bonds, equities, commodities and cash.  

Aiming for a smoother investment journey

The aim of our investment strategy is to provide our members with higher returns in the medium to long-term, when compared to saving with a bank or building society account. To help achieve this, the plan aims to smooth returns for our members, in order to try and mitigate the effects of any sharp falls in the market. 

Of course, no investment is free from risk, and the way in which the fund is managed provides members with a medium to low risk investment product. This may appeal to those who would like to take advantage of the benefits of investing, but with the aim of a smoother investment journey.

Receiving your fair share 

Unlike some Stocks & Shares ISAs that are invested directly in shares or in a share-tracking index, the money you invest with us will not normally fluctuate from day to day. However, please note that when you close, transfer or withdraw funds from your ISA, we will calculate the value of the investments that you hold within the With-Profits Fund to ensure that you leave with your fair share. This may mean that: 

1. If you have been invested through periods of strong investment performance, you might get a final bonus, or; 

2. If you have been invested through periods of poor investment performance, and you leave the fund, you may get back less than the current value of your plan 

In some circumstances, an MVR could result in you receiving back less than you have paid in. Therefore, the amount you will receive on repayment is not guaranteed. To see all of the latest information on MVRs, please click here. 

Open a Sustainable Stocks and Shares ISA and get rewarded too. We’ll send you a Love2shop voucher code worth up to £100 when you make your first payment. See our terms and conditions.

Help to create a more sustainable future and start saving towards your own. Download the documents below for all the key information on how our Sustainable Stocks & Shares ISA works. 

  • Past performance cannot be taken as a guarantee of future returns.
  • Bonus rates vary from year to year depending on the performance of our investments and in some years we may not pay out any at all.
  • HM Revenue and Customs may change the tax status of an ISA in the future.
  • Inflation and making regular withdrawals may affect the purchasing value of your investment in the future.
  • In poor investment conditions we may apply a Market Value Reduction (MVR).

When you take out an investment product with us your capital is at risk and you may get back less than you have put in. All references to taxation are to UK taxation and are based on Shepherds Friendly Society’s understanding of current legislation and H M Revenue and Customs practice which may change in the future. Investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.

Please note: No advice has been given by Shepherds Friendly, and if you are in any doubt as to whether a savings plan is suited to your needs, then you should contact a financial adviser. There may be a charge for financial advice, and the cost should be confirmed to you before any advice is given.