Established 1863

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ESG ISA

ESG ISA

Our ESG ISA gives you a way to save in a modern, ethical fund, in a flexible way to potentially outperform a Cash ISA over the longer term.

You can invest in our ESG ISA in addition to your Cash ISA each year as long as you don’t exceed the annual ISA limit set by the government (£20,000 in the 2020/21 tax year).


Main Product Features

  • Flexible

    There is no fixed term of years (although you should consider it a medium to long term investment, typically 5 years or more)

    There is no set premium – you can pay in regularly by direct debit of £25 or more and / or invest lump sums at any time up to the annual ISA limit. If you pay by Direct Debit you can alter the amount whenever you want or even stop paying for a period of time.

    You can make withdrawals at any time, although this will obviously affect the total return

    You can transfer ISAs from other providers to us or transfer your Red Rose ISA to another provider

  • Tax free

    Our ISA provides a tax free return when you cash in, transfer to another provider, or on your death

  • More about the fund

    We all hear and read about issues facing society on a daily basis, whether it is looking
    after our precious planet and its resources, the treatment of employees and diversity
    policies in companies, how some companies have abused their power or disregarded their
    impact on communities and the environment (for example some global car makers falsifying
    diesel emission figures and clothing firms using slave labour).

    This fund prioritises its investments towards companies that show good practice in these
    3 areas – Environmental, Social and Governance - and reduces investment in companies
    demonstrating poor performance in these areas. Because of the size of the funds under
    management, this is a positive way to influence companies to improve their ESG behaviours.

  • Where does the Fund invest?

    The Fund is managed by a specialist team at Legal and General. It invests in global developed-market equities, mainly large companies in a variety of countries and sectors, including Communications and Technology, Consumer, Industrials, Financial Services and Commodities.

    Each firm is given an ESG score, based on the following factors:

    Environmental - Environmental issues relating to our planet, such as climate change, deforestation, resource usage and recycling.

    Social - Social issues centre on companies having the right culture including treating all workers fairly regardless of gender, race, ethnicity, sexual orientation etc.

    Governance - Governance involves ensuring that companies are run properly, balancing the needs of shareholders, all employees, customers and the local community.

    It does not invest in companies whose only activity is coal mining, manufacturers of controversial weapons, or perennial offenders of the UN Global Compact.

    The United Nations (UN) Global Compact is designed to encourage businesses worldwide to adopt sustainable and socially responsible policies in areas of human rights, labour, the environment, and anti-corruption.

Things to consider

You will find more information about the ISA in the Key Information Documents and Key Features Document. Below are some important points that we want you to be aware of:

This is a medium to long term investment (5 years or more) and although it is flexible so that you can withdraw some or all of the money (with a £100 minimum) at any time, you could get back less than you have invested

Please note that this is a risk investment – there is no guarantee that you will get your money back. The value of your ESG ISA can go down in value as well as up, and is based upon the performance of the underlying investments in the ESG Fund

Inflation will have an effect on the future purchasing value of your investment

HMRC could change the tax status of ISAs in the future

Product Comparison Table

Product
Tax Exempt Savings Plan

ISAs

Investment Bond
Min prem £10 £25 pm
or £500 initial
£500
Max Prem £25
(a taxable version is available if a higher premium is required)
£20,000
for 2020/21 tax year
Unlimited
Min age at outset 17 18 Birth
Max age at outset 74 None 90
Min term (years) 10 None
but should be considered a medium to long term plan (5 years or more)
None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30
(but must mature before 85th birthday)
Unlimited Unlimited
Fixed term Yes No No
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
No
Life cover Sum assured plus all bonuses added to date of death 101% of the ISA value at date of death 101% of the Bond value at date of death
Transferable No Yes
can be transferred from or to another provider
No