Sustainable investment, also known as socially responsible, green or ethical investments, describes an investment strategy that seeks to maximise environmental, social and financial gains. It’s about people, planet and prosperity.
In general, sustainable investment favours companies that promote environmental stewardship, consumer protection, human rights, and diversity.
Some (but not all) avoid businesses involved in alcohol, tobacco, gambling, weapons, and/or the military. The areas of concern recognised by the sustainable and responsible investment (SRI) industry can be summarised as environment, social and governance (ESG).
But it’s not all just about avoiding the bad guys.
Investing positively in companies that are providing solutions to some of the most urgent sustainability challenges – often called impact investment – has been a major trend in recent years. Renewable energy, clean technology and sustainable agriculture, forestry and fishing are just some of the areas that investors are looking at.
Whether your priority is to invest in companies that are ‘doing good’ or simply to screen out those companies that are doing the most harm, I can build you an ethical portfolio investing in funds featuring companies that want to make a healthy profit in a way that is good for people and the planet.