How To Invest Ethically – Part 2

In part one of our two part series on ethical investing we looked at what it was, how it differ from sustainable investing and what it means to people. In this article we’re going to breakdown more specifics tips on how to change your portfolio and investment style.

Some of the benefits of ethical investing

1. Environmental protection: Ethical investors often invest in companies that are leaders in environmental protection, such as renewable energy or green technology. This can help to support the transition to a more sustainable economy and combat climate change.

2. Social justice: Ethical investors may also invest in companies that promote social justice, such as those that provide fair working conditions and pay living wages. This can help to improve working conditions and reduce poverty globally.

3. Financial returns: Although ethical investing is often motivated by non-financial considerations, it can still provide financial returns. Many ethical investments have outperformed the market over the long term, as investors are increasingly interested in sustainable and responsible companies.

4. Reduced risk: Some ethical investments, such as those in renewable energy, can offer reduced risk compared to traditional investments. This is because they are less dependent on fossil fuels, which are subject to price fluctuations.

5. Positive impact: Ethical

How to get started with ethical investing

If you’re interested in ethical investing, there are a few things you need to know before getting started. Here’s a quick guide on how to get started with ethical investing:

1. Know your values. What is important to you? What do you want your money to support or not support? Doing some soul-searching can help you figure out what kind of investor you want to be.

2. Do your research. Once you know your values, it’s time to start researching companies and funds that align with your ethics. There are a lot of resources available online, so take advantage of them.

3. Consider your options. There are a few different ways you can invest ethically. You can invest in individual companies that align with your values, or you can invest in funds that focus on socially responsible investing (SRI). You can also screen out companies that don’t align with your ethics using negative screening criteria.

4. Make a plan. Once you know how you want to invest ethically, it’s time to make a plan. Decide how much money you want to invest and when you want to invest it. Then, start investing!

Ethical investment funds

There are a growing number of investment funds that focus on companies that are considered to be ethically responsible. These funds take into account a variety of environmental, social and governance factors when making investment decisions.

If you’re interested in investing in an ethical fund, there are a few things you should keep in mind. First, make sure you understand the fund’s investment philosophy and objectives. Second, be aware that ethical funds may have higher fees than traditional funds. Finally, remember that even though a fund is labeled as “ethical,” it doesn’t mean that all of its investments will be completely socially responsible.

Individual stocks and shares

When it comes to investing, there are a lot of different options out there. But how can you make sure you’re investing ethically?

One way to invest ethically is to choose companies that align with your values. For example, if you’re concerned about the environment, you might want to invest in companies that are working to reduce their carbon footprint. Or, if you’re concerned about social issues, you might want to invest in companies that are working to improve conditions for workers or create opportunities for underrepresented groups.

You can also look for funds that specifically focus on ethical investments. These funds screen companies based on a variety of criteria, such as environmental impact, social responsibility, and governance. This can help you support companies that are making a positive difference in the world.

Of course, it’s important to remember that no investment is completely risk-free. But by doing your research and making informed choices, you can help ensure that your money is supporting businesses and causes that align with your values.

Exchange traded funds

If you’re looking to invest ethically, then you might want to consider investing in exchange traded funds (ETFs). ETFs are a type of investment fund that hold a basket of assets, such as stocks, bonds, or commodities, and track an underlying index. This makes them a great way to get exposure to a wide range of investments without having to pick and choose individual stocks.

There are a number of ETFs available that focus on ethical investments, such as those that track environmental, social, and governance (ESG) indices. These funds aim to invest in companies that are making positive contributions to society and the environment.

Before investing in any ETF, make sure to do your research to ensure that it aligns with your ethical values. Also, remember that even though ETFs can be a great way to invest ethically, they come with the same risks as any other investment.

The Bottomline

There are many benefits to ethical investing, both for the investor and for society as a whole. Ethical investing can help to create a more sustainable and just world, while also providing financial returns for the investor. If this is right for you, we hope we’ve helped piqued your interest. As with any investment please seek qualified professional help before making any decisions.