Low-cost robo-adviser Nutmeg has started to provide environmental, social and governance (ESG) scores for its investment range and challenged the industry to do the same.
The firm said it was the first UK wealth manager to make this move and the ESG scores are calculated using data points from MSCI.
Shaun Port, chief investment officer, Nutmeg, called on other investment providers to make similar moves rather than wait for regulation to force them to be more transparent with customers.
“Whether it’s ethical, green, sustainable, ESG, or socially responsible, it isn’t always clear what these labels mean for investments, or investors. For too long many investments have hidden behind these terms without defining the purpose they are serving,” he said.
In 2014 fund manager Schroders bought a stake in Nutmeg, which invests its clients money in exchange-traded funds.
Nutmeg also said it was launching ten managed and globally diversified socially responsible portfolios.
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