Environmental, social and governance issues are important to consider when investing to protect your reputation and ensure your investment’s sustainability, according to Gemma Woodward, fund manager at Newton Investment Management.

Woodward, who was speaking at the 2010 Charity Investment Forum on mitigation of risk through SRI and sustainable investment, said ESG matters could have a material impact on a company’s value and reputation.

“Charities are mostly investing for the long term. Therefore you need a long-term investment focus.

“Constructive and positive labour relations are critical to a company’s long-term success and a company’s reputation which is tarnished may deter customers and investors so share price is likely to suffer.

“Business disruption affects profitability.”

Woodward also highlighted the potential impact of the recent Copenhagen targets with companies possibly having to adopt new environmental policies which could increase their cost base.