Article last updated 18 August 2026.
I remember vividly the first moment when the power of money became real to me. I was perhaps 15 or 16 and was listening to a speaker at a conference. The next detail will date me, because the speaker asked us to hold up a bank note from our wallets. We all had cash on us, so we did. He asked if we knew that, statistically, a high percentage of those notes would carry trace elements of Class A drugs, given the surge in recreational drug use happening at the time. He then challenged us: that was what the note had been used for before. But right now – it's in your hands. What will you do with it? What world will you shape with it? What choices will you reward with it, and what decisions will you punish by withholding it?
The best examples of generational wealth transfer embody what we might call intra-generational equity – a sense of long-term stewardship of family assets, seeking to grow them, and permanently secure them so that this generation and future ones can all benefit. However, when we come into wealth – whether through inheritance, windfalls, or a business sale after decades of hard work – we all face choices about not just the returns we want, but the risks we will run to try and get them. And those risks include the kind of world we are incentivising for our children and grandchildren.
Yes – and significantly. Despite some headwinds of late, there’s real and sustained interest in aligning investment practice with personal values. It's difficult to get reliable evidence, but opinion surveys such as the Morgan Stanley Sustainable Signals 2025 report – which sampled high net worth (HNW) investors in the UK, France, Germany, Sweden, Denmark, and others – found that 88% of individual investors globally were interested in sustainable investing. Understandably, interest was highest among Gen Z (99%) and Millennials (97%). More than 50% plan to increase their sustainable allocation in the next year, and only 3% plan to decrease it. That's despite the broader debate around sustainable investing and recent scepticism about environmental, social and governance (ESG) approaches to investment. Even if you don't particularly identify with the trend, it's likely the generation below you strongly favours it.
It's also never been easier to invest in this area with confidence, thanks in part to increasing regulation. The Financial Conduct Authority's Sustainability Disclosure Requirements (SDR) rules were published in November 2023. They set out four voluntary product labels – Focus, Improvers, Impact, and Mixed Goals – alongside an anti-greenwashing rule. By October 2025, over 150 labelled funds were estimated to be in the UK market, including several operated by our Rathbones Asset Management (RAM) business. What was once a nascent area has been brought into sharp focus, and the scrutiny around sustainability claims is hugely welcome.
So, we've established the demand, and we have a well-developed product suite to serve it. But how can you start your journey here with confidence? Here are a few key terms to explore and understand.
There is a range of responsible investment approaches available, and many investors choose to adopt a blend of these. These approaches are not mutually exclusive. Many responsible investors combine exclusions, ESG integration, sustainable and impact investing, and active stewardship within a single portfolio. The right mix will depend on your objectives, values, and desired level of influence, as well as your financial goals and risk appetite.
Exclusionary screening means choosing not to invest in companies or sectors that conflict with your values. These exclusions might relate to what a company does. For example, if you’re a cancer charity, you exclude tobacco; if you're an anti-war campaigner, you avoid weapons manufacturers. Or they may relate to how a company behaves, such as how it treats its employees or manages its environmental impacts.
All investment is about balancing risk and reward. ESG investing starts with the idea that there are far more risks that can truly affect a company's financial performance than mainstream accounting has traditionally considered. Alongside deep and robust financial analysis, investors consider issues such as climate risks, workforce management, supply chain standards, business ethics, and board effectiveness to better understand risks and opportunities.
Sustainable investing focuses on companies, sectors, and projects that contribute positively to environmental or social outcomes while also seeking competitive financial returns. This approach typically looks for businesses whose products, services, or operations help address major sustainability challenges, such as climate change, resource efficiency, healthcare access, education, or financial inclusion.
Impact investing involves investing in companies and issuers with the intention to generate a measurable positive social or environmental outcome alongside a financial return. For example, a bond that aims to prevent deforestation in the Amazon or an affordable housing developer that employs ex-offenders to support rehabilitation. Some impact investments may involve accepting lower financial returns in pursuit of greater impact. But many seek to deliver both strong financial performance and meaningful real-world outcomes.
Responsible investment doesn’t stop once an investment is made. Engagement and stewardship involve using shareholder rights and influence to encourage companies to improve their practices and performance. This can include meeting company management, collaborating with other investors, voting at company meetings, and filing or supporting shareholder resolutions. Engagement seeks to promote positive change and support better long-term outcomes for investors, society, and the environment.
The potential impact of responsible investment considerations will vary depending on a range of factors, including the approach being taken, the time horizon over which investments are assessed, and the types of assets or investment strategies considered. Different responsible investment approaches can lead to different outcomes, and the relevance of particular ESG issues will often depend on the specific investment context and an investor's objectives.
Rathbones has a long heritage of helping clients navigate complexity and delivering bespoke investment solutions tailored to their individual needs and circumstances. This includes supporting clients who wish to explore how responsible investment considerations can be integrated into their portfolios. So, we encourage you to speak with your investment manager, adviser, or usual contact if you would like to discuss these concepts further. More broadly, our approach to ESG integration and stewardship is rooted in the belief that these activities represent good investment practice. They help investors identify and manage risks, capture opportunities, and support the delivery of long-term value.
At Rathbones, responsible investment is integral to how we manage money. That's because it allows a more complete framework for analysing investment risks and rewards. But our starting point is always you: your goals, your priorities, and the future you want to create.
We take the time to understand what matters most to our clients, recognising that views on responsible investment vary. For some, ESG considerations are a central part of how they wish to invest. For others, these issues may be less important. Whatever your perspective, our investment professionals can help you explore the options available and shape an approach that reflects your individual circumstances and ambitions.
This personalised approach is supported by a long and established heritage in responsible investment. We became a signatory to the United Nations-supported Principles for Responsible Investment in 2009 and have decades of experience helping clients invest in line with their values and long-term objectives.
For clients seeking a more dedicated ethical and sustainable investment approach, Rathbones Greenbank provides specialist expertise built on decades of experience. Combined with the breadth of Rathbones' wider investment capabilities, this enables us to support a broad range of client preferences while maintaining a clear focus on delivering long-term investment outcomes.
The UK Sustainable Investment and Finance Association – the trade association for the UK's sustainable investment industry – suggests starting with some questions:
These are the right questions to bring to a conversation with your Rathbones adviser. There’s no single correct answer – the right approach depends on your values, your goals, and your financial circumstances.
Across the UK, and around the world, millions of investors are asking the same questions – about the world they want to fund, the future they want to shape, and the values they want their wealth to reflect.
That bank note is still in your hands. And you are not alone in holding it. No single investor builds a cathedral – but cathedrals do get built, stone by stone, by many hands working with a shared sense of purpose. Responsible investing is that same act of collective intention. The questions in this guide are a good place to start. Your Rathbones adviser is where it becomes real. What will you build?
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