Ethical Investments

Investment priorities are changing. With growing concern over climate change, worker’s rights and greater sustainability, the need for alternative environmental and socially conscious investment opportunities are greater than ever. Once seen as a niche investment strategy ethical investing has become much more acceptable to investors in recent years. While central to any investment is a profitable return, investors are looking more and more at renewable energy, social responsibility, the impact on the environment and sustainability when considering their investment opportunities. They are becoming more concerned that traditional investments could be affected by future government policy in tackling climate change, the finite supply of fossil fuel and society’s changing attitudes to environmental protection and social responsibility in the long term.

 

The last financial crisis, as well as issues around climate change, have caused investors to think carefully when choosing investment funds. Many are looking at companies who have demonstrated strong environmental and social responsibility practices, especially in light of changing attitudes and high profile environmental catastrophes. This along with the need for alternative investment options has helped to increase the focus on responsible investing.

 

What are Ethical Investments?

Ethical investing is any investment strategy in which you apply your values— social, moral, religious — to your portfolios and investment strategies. It comes in many different investment forms, some more stringent than others. The common theme is a set of ethical principles which are about more than simply making money. For example, many ethical investment funds refuse to invest in arms, tobacco or oil and avoid companies who don’t meet the UN Global Compact criteria – https://www.unglobalcompact.org/ and can include environmental social and governance investing, sustainable, impact, values-based, conscious and green investing. Socially responsible investing, also known as ethical investing, is any investment strategy that considers both financial return and social good to bring about a social change.

 

Investing in Ethical Stocks, what to do next?

Before you look for a suitable fund you should consider what type of companies you would like to invest in and which you don’t. If you’re not sure your financial adviser will be able to advise you.  There are some funds that use terms like ethical, socially responsible or sustainable in their name despite investing in companies that most people would regard as unethical, so make sure you do your research in advance.

 

Consider what is important to you when looking at investment opportunities?

  • What are your reasons for investing in the first place?
  • What’s your risk tolerance?
  • Why are you investing in ethical stock? By excluding investments that don’t meet your ethical criteria you are excluding some higher performing stocks. You invest to make money so be careful and do your homework
  • As with all investments make sure you have a long-term plan and stick to it.

For more information about Ethical Investments or Investments, in general, call us on 091 778677 or email advice@olg.ie

 

Warning: Past performance is not a reliable guide to future performance. The value of your investments, as well as any income generated from such investments, may go down as well as up. You may not get back all of your original investment. Returns on investments may increase or decrease as a result of currency fluctuations.

 

This article is for information only and is not financial advice. You should always obtain your own independent advice based on your own particular circumstances, before entering into any financial contract.

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