Ethical and sustainable investing is rapidly growing in popularity. We define ethical and sustainable investing as investing with a view to helping society, the climate, planet, and avoiding areas that can be considered unethical.
Ethical investing aims to exclude benefiting from organisations or industries that are considered harmful to society and the environment. Instead, it is about investing in organisations and companies that are committed to operating in a sustainable and positive way for the future.
This is usually done by filtering the harmful practices out (negative screening) and actively seeking to invest in companies that are committed to making positive decisions through their environmental, social and governance (ESG) practices (positive screening).
Investors are being influenced by growing concern for the planet, and the impact that certain companies are having on the environment. Individuals want their money to have a positive impact on the world and want clarity of what they are investing in and how their money is being used.
Sustainable investing can also be referred to as socially responsible investment or green investing.
We hope the information in this guide is helpful and broadens your knowledge of ethical and sustainable investing.