Making and growing money is one of the goals of investing. However, there is a way that you can make it more worthwhile, and that is by considering socially responsible investing. Known as an ethical investment strategy, it has been getting more attention recently as active investors show that they invest in companies that are making socially responsible actions and choices. With this investment method, investors could feel right about being good stewards for the earth while supporting socially responsible organisations, which are expected to create healthy and safe services and products, avoid predatory and unethical business practices, and treat their employees properly.
That being said, socially responsible investing is not merely about making a profit and growing your nest egg. It goes beyond that, as it encompasses thriving and building sustainably and responsibly.
Is it a good investment strategy? The answer will depend on many factors, but it is possible to invest ethically in socially responsible organisations with a track record of providing investment returns on par with the conventional market. Just keep in mind that it still comes with some risks. Just like other businesses and investments, these socially responsible investments can experience ups and downs.
In socially responsible investing, you need to find companies with proven ethical practices, which could mean different things, depending on one’s perspective. For instance, an ethical practice could mean using or manufacturing green technologies (i.e., solar panels) or a socially responsible fund that may avoid investing in certain areas, like firearms and tobacco.
The more you should try socially responsible investing if you want to have a more personal connection to your investments and you are looking to invest your money in more worthy or noble causes. Your choice of the company to invest in will depend on your beliefs and values. For instance, if you dislike tobacco, you may want to avoid companies that manufacture and promote such products, and consider a company that delivers affordable organic or local produce. You can also consider companies focused on opportunities in the modern foods industry, which develops and implements environmentally friendly alternatives to conventional meat and plant-based food products.
About the Author:
Agronomics (LSE: ANIC), the AIM-listed investment company, remains the only UK based vehicle that provides the public with an opportunity to engage in a sector which is likely to become the future of our food. August saw Agronomics participate in BlueNalu’s latest fundraising round following the announcement of their First-of-its-Kind Commercialisation Strategy. When Jim Mellon and Anthony Chow return from attending the Good Food Conference, I am sure the September buzz for this hot sector will continue.
