Are you tired of investing in companies that only prioritize their profits, without considering the impact they have on society and the environment? Ethical investment might be just what you need to generate returns while also making a positive difference.
In this blog post, we'll explore how ethical investment can help de-risk your portfolio and create sustainable returns, all while contributing to a better world.
Sustainable returns - Investing ethically can help you generate sustainable returns that not only benefit your financial goals but also contribute to a better world. Sustainable investments are typically companies that operate in industries such as renewable energy, green technology, and social justice. Sustainable companies tend to have long-term growth potential due to their focus on creating positive change for people and the planet. This can lead to consistent profits over time which is great news for investors who want reliable returns. Moreover, investing in sustainable funds or assets means that you’re supporting businesses with strong environmental and ethical practices. These companies prioritize transparency, accountability, and sustainability while minimizing negative impacts on society and the environment.
De-risk your portfolio - When it comes to investing, there's always a certain level of risk involved. However, ethical or sustainable investments can offer a way to de-risk your portfolio and potentially generate positive returns. This is because companies focused on sustainability tend to have strong long-term prospects, as they are more likely to thrive in the face of environmental and social challenges. Additionally, these companies often have lower levels of debt and higher levels of transparency than those that prioritize short-term profits over sustainability. By diversifying your investment portfolio with ethical choices, you're also spreading out your risk among different industries and sectors. This means that if one sector experiences a downturn or crisis (such as the oil industry during the COVID-19 pandemic), your overall portfolio will not be as heavily impacted.
Positive impacts - Positive impacts are one of the most compelling reasons to invest ethically. By choosing companies that prioritize environmental, social and governance (ESG) considerations, you can help drive positive change in society while generating financial returns. The positive impacts of ethical investing can take many forms. For example, by selecting companies that strive to reduce their carbon footprint or improve energy efficiency, investors can contribute to a cleaner environment and make progress towards combating climate change. Investing in firms with strong labour practices and fair employee treatment also has a significant impact on society as it helps ensure workers receive fair wages and benefits.
