What is Ethical Investing
Ethical Investment is known by a variety of terms including Green Investments and Socially responsible investment (SRI). These terms refer to financial or investment services which strive to maximise both investment performance and social welfare. In general, ethical investments looks to encourage corporate practices that promote environmental stewardship, consumer protection, human rights and diversity, although additional criteria such as avoidance of weapons, alcohol, tobacco gambling and pornography are often included as legitimate areas of concern.
These criteria are usually referred to as environmental, social justices, and corporate governance, or ESG
What are its benefits?
It gives investors the option to avoid companies that engage in activities that they would not wish to support and to proactively invest in companies that recognise their corporate social responsibilities. Ethical investing is now one of the fastest growing areas in financial services with funds under management having grown to approximately $8.72 trillion dollars in the United States alone.