Good Egg awarded March 2022
Renewed 2023
About Path Financial
Path Financial, a B Corp company, offers a range of financial advice and wealth management services as well as positive impact investment options.
Summary of findings
The Good Egg criteria is divided into industry/ customer impact, environmental and social.
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Read the full report here
Industry/ Customer impact findings
- The Path offers free consultations to everyone, even if it transpires that they are not suitable to become clients. In those cases, it will help, guide, and suggest alternatives, where it can.
- There are no restrictions on location. The company offers in-person, telephone and video call consultations.
- It states that: “We have a current focus on women, gender balance and diversity. As an example, we are participating in the Women of the World Festival in London during March, participating in relevant panel discussions in addition to launching new online content covering early planning – taking financial responsibility ahead of a relationship, maintaining financial freedom within a relationship, leaving the workplace – temporarily or permanently, children – investment planning for their future and yours, divorce etc.”
- Business processes are centered around the FCA initiative of Treating Customers Fairly (TCF) and include a robust Vulnerable Client Process, clear and unambiguous reporting on product, advice and management charging across all client communications (for example, within regulated suitability documents, projections, comparisons and illustrations), and providing client-facing advice documentation that exceeds stated compliance requirements, in order to ensure customer confidence and reassurance.
Environmental findings
- The company believes in positive impact investing by not only avoiding investment into damaging industries such as fossil fuels, weapons manufacturing, and poor environmental practices, but choosing to invest in companies working towards a better future, through sustainable manufacturing, renewable energy, healthcare, and education for all.
- The Path avoids investment in sectors such as coal, mining, oil majors, palm oil and with poor environmental practices. The company launched a new Climate Solutions portfolio in 2021.
- The Path states that it is set up solely to tackle climate change. It states that it monitors and reviews all aspects of its business including environmental impact on a regular basis and aims to reduce negative impacts where it can.
- It aims to be Net Zero by the end of 2022 and will look to include Scope 1, 2 and 3 emissions, in line with the criteria needed for science-based targets.
Social findings
- The Path excludes investments in sectors involved in alcohol, armaments and military, gambling, poor labor standards, tobacco and unhealthy foods.
- The company also states that it incorporates social issues such as housing and care amongst its portfolio funds.
Internal policies
- The Path is proud to be a Living Wage employer and offers flexible working from home.
- It has a comprehensive range of internal policies.
Path Financial Good Egg Final Report
Comment from Path Financial:
David McDonald, Founder of Path Financial, said: “We are delighted to be one of only three financial advisers to have been awarded the Good Egg Mark. This is a further validation for our ethical and positive impact strategy. As the first and still only financial adviser set up with positive impact at the heart of all we do, it’s been amazing to see the traction we have gained over a relatively short period of time.
“Clients and staff have joined us in numbers because we manifest a meaningful purpose. We show people the path to financial security and freedom with sensible down-to-earth planning. All the while, our client funds are invested in a way which is positive and sustainable for people and planet as well as providing superior investment returns.”
Panellist comments:
“I really like, in particular as it’s not that common, their focus on measurable impact, gender and diversity and achievement of B corp certification which isn’t an easy process. And like their calling out of Natwest’s social bond – shows they are thinking critically about the funds offered under positive impact banners.
“I was particularly impressed by their pledge to be net zero by 2022, including scope 1, 2, & 3, their portfolio analysis against the SDGs, and the inclusion in their report of samples from their ESG ratings partners which demonstrate the depth of analysis and also some of the difficulties and nuances of making ESG determinations, for example in the discussions around nuclear power generation or fish farming (separately, it will be interesting to see how they achieve full net zero by the end of this year while maintaining investments in those companies, particularly the aquafarming business). I also appreciated their pledge on salary multiples and focus on women and DE&I, whilst the only negatives are ones that are universal for asset manager/investor firms – primarily that they are only really for people with money and can’t really do much for those lower on the socioeconomic spectrum, other than through their investments.
“They look impressive and clearly loads of good stuff there including the Climate Solutions Portfolio.”
More on Path Financial from Good With Money:
Path Financial awarded Good Egg