In a world where the news cycle is increasingly dominated by stories of social injustice and environmental catastrophes, it can feel like there isn’t much we, as individuals, can do to help. But that couldn’t be further from the truth.
The fact is, with so many people feeling helpless in this uncertain time, there has never been a better time for ethical investing. Not only does it have the potential to make us happier in the long run, but crucially it also can have a real and positive impact on the world we live in today.
What Is Ethical Investing?
Ethical investing is any investment strategy that tries to make positive contributions to society and the environment and make a monetary return.
It is about more than just not investing in something you find immoral; it’s about being deliberate about what you do choose to invest in, and making sure it’s something that is going to make the world a better place.
Ethical investing can encompass anything from socially responsible investing (SRI) to impact investing. SRI is about excluding certain industries that are deemed ethically questionable. In contrast, impact investing is about actively seeking out opportunities to support industries and businesses with a positive social or environmental effect.
Read on to discover why ethical investing is so important to Humankind and how you can get started immediately!
Why Is Ethical Investing So Important?
In a time when the world is experiencing so many challenges, it’s important that we all do what we can to make it a better place. Ethical investing is one of the easiest ways that we can start to make that difference.
When you choose to invest ethically, you’re choosing to support companies that are making positive contributions to society and the environment and making a monetary return.
This is great for the world around us, and also means that you can sleep easier knowing you’re not invested in industries that may harm people or the environment. This can have a positive knock-on effect on the rest of your life.
Moreover, studies have shown that ethically investing can help your investments perform better than those made without any ethical considerations.
How To Get Started on Ethical Investing
To invest ethically, you must first decide what your investment criteria are. This can be anything from a specific area of the market you want to invest in, to a certain type of company you want to avoid investing in.
What are your core values? What do you care about? Why is this important to you? Once you know what you want to invest in, you can start to research your options.
In Conclusion
Today’s investment landscape is fraught with challenges. On one hand, we have ever-growing wealth inequality, on the other, we have a market crash that seems to be looming every now and then.
It all comes down to this: How do you invest your money so it benefits you and the world at large? How can you support companies that align with your values without sacrificing returns? All in all, ethical investing is a great way to start making a positive difference to humankind and the world at large, and there has never been a better time to get started.
