Investing with ethical factors in mind has changed over the years. The process of highlighting and selecting ethical investments has transformed, going from just avoiding investments associated with things like alcohol and tobacco, to taking a more holistic and sophisticated approach and judging a business on its impact on the environment, or how they treat their employees.
What is Ethical Investing?
Ethical investing involves investing into businesses that meet a certain set of ethical criteria or into funds that are aware of the ethical implications of that investment. This could mean that an investor may only choose to invest in business that has environmentally friendly practices, or funds that are focused on businesses that promote fair trade.
Why Should Investors Consider Going Ethical?
Ethical investments are on the rise. According to a biennial report released by the Global Sustainable Investment Association, ethical assets had grown by 25% in 2016. This shows that more people are considering these investments, and many businesses are following suit by incorporating more ethically-focused practices into the way they are run.
It should also be noted that investing ethically, according to a report conducted by Nuveen TIAA Investments, doesn’t present a statistically different rate of returns compared to the rest of the market.
This means that for investors looking to make the world a better place with their investments can worry less about an increased amount of risk.
Another important thing to consider when looking at ethical investing is that it’s a great way to make a difference to the world. Through ethically investing, individuals can encourage other companies to follow suit.
How Can I Get Involved?
It’s a useful idea for investors to add ethical funds and investment to their portfolio to actively seek out companies who are providing positive solutions to various social and environmental issues.
If you’re looking for financial advice regarding ethical investments and funds, talk to our financial advice team. Please call on 01926 492406 or email us at email@example.com to make an appointment.