What is ethical investment?
Ethical investment is no longer simply a matter of avoiding arms manufacturers or tobacco companies. Nor is it a trade-off that means lower investment returns.
Today, more and more of us are making greater efforts to protect the world we live in. Increasingly, we strive to recycle paper and plastic waste, buy food that is organically and sustainably produced, and ask searching questions about the working conditions of those who make our clothes.
Many people are looking closely at what companies do and how they act on the world stage, and find the idea of investing in organisations engaged in any way in the arms industry, or who actively contribute to spiralling third-world debt, a complete anathema.
The good news is that this discerning approach can also carry through to the investments we make. As we all know, it makes good sense to grow your money for the future, and now you can choose to make a difference when you invest your savings, pensions and ISAs, without compromising on the opportunity for growth.
Making informed choices
In general, there is no single definition of ‘ethical’, it’s basically a matter of personal choice. Everyone has their own view on the types of industries they are happy to support, or those they are anxious to avoid.
The good news is that you can now choose from a wide range of green, ethical and socially-responsible investments that have a positive impact on the world around us. This means that the money you invest can be used to benefit society, as well as yourself.
Ethical funds typically choose to invest in companies that can demonstrate their commitment to important aims like improving the environment, and operate good social governance policies and pursue green initiatives.
If you’d like to know more about how you can align your moral views with your investment choices, we can offer you the advice you need.