A new breed of ethical investors and investments is on the rise. As Australians look to direct their money in organisations, businesses and projects that align with their values, it’s more important to learn about how to be ethical with money.
Read on to learn more about where you can ethically invest, how to do it and the benefits of investing ethically.
What is ethical investment?
Investing ethically is defined as “any investment strategy which seeks to consider both financial return and social/environmental good to bring about social change regarded as positive by proponents.” It means to invest money into places that share the same social, ethical and religious values that you hold dear. As people become more aware of where their money is invested, doing so in an ethical way is rising in popularity.
One new player to the ethical finance game is Verve Money. Verve Money is an investing app to help people reach their money goals with ethical investment curated by specialists, who undertake a negative screening process to ensure that there is no chance of exposure to socially irresponsible or unethical assets. Verve provides investment opportunities that reduce harm and promote diversity, environmental responsibility and economic inclusion from companies and funds that can be invested in via bonds, the stock exchange and ‘alternative’ impact investments. The investment team at Verve believes that responsible investments can outperform the market, which is why they create diversified portfolios and look for well-performing investments to balance risk.
Why should we invest ethically?
Investing money in funds and companies that align with your morals has a few advantages. One is that when your ethical holding company is doing well, it benefits you both financially and emotionally. It makes you feel as though your investment is making a difference. Another is that if more people invest in ethical funds, investments may grow considerably in the future and it encourages other businesses to assess their morals and ethicality. The more companies engaging in ethical practices, the better!
Ethical investing is not going anywhere, and is gaining traction around Australia and the world. If you do some research, you can find a fund that aligns with what you believe in, and has a track record of investing money in places that benefit all, rather than the few.
By Sarah Panther