Ethical Investing: Overview and How To Do It

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Definition of 'Ethical Investing: Overview and How To Do It'

Ethical investing is a way of investing that takes into account social, environmental, and governance (ESG) factors in addition to financial returns. Investors who choose to invest ethically may do so for a variety of reasons, including:

* **To make a positive impact on the world.** They believe that investing in companies that are committed to sustainability and social responsibility is a way to make the world a better place.
* **To reduce risk.** They believe that companies with strong ESG practices are less likely to be involved in scandals or other negative events that could harm their stock price.
* **To align their investments with their values.** They want to invest in companies that they believe are doing good things for the world, and they want to avoid investing in companies that they believe are doing harm.

There are a number of ways to invest ethically. One way is to choose to invest in mutual funds or exchange-traded funds (ETFs) that have been screened for ESG criteria. Another way is to invest directly in individual companies that have strong ESG practices.

If you are interested in learning more about ethical investing, there are a number of resources available to you. The Sustainable Investing Association (SIA) is a non-profit organization that provides education and resources on ethical investing. The SIA also offers a certification program for financial professionals who want to specialize in sustainable investing.

The SIA's website (https://www.sia.org/) is a great resource for learning more about ethical investing. The website includes a glossary of terms, a list of resources, and a directory of financial professionals who are certified in sustainable investing.

Another great resource is the website for the Forum for Sustainable and Responsible Investment (https://www.fsri.org/). The FSRI is a non-profit organization that promotes sustainable and responsible investing. The FSRI's website includes a wealth of information on ethical investing, including research reports, articles, and webinars.

If you are ready to start investing ethically, there are a few things you need to do. First, you need to decide what your investment goals are. Are you looking to make a positive impact on the world? Are you looking to reduce risk? Or are you looking to align your investments with your values?

Once you have determined your investment goals, you need to decide how you want to invest. Do you want to invest in mutual funds or ETFs that have been screened for ESG criteria? Or do you want to invest directly in individual companies that have strong ESG practices?

If you decide to invest in mutual funds or ETFs, there are a number of resources available to help you find funds that meet your criteria. The SIA's website (https://www.sia.org/) has a list of funds that have been screened for ESG criteria. You can also use the FSRI's website (https://www.fsri.org/) to find funds that have been rated for their sustainability practices.

If you decide to invest directly in individual companies, there are a number of resources available to help you research companies' ESG practices. The SIA's website (https://www.sia.org/) has a list of resources for researching companies' ESG practices. You can also use the FSRI's website (https://www.fsri.org/) to find companies that have been rated for their sustainability practices.

Ethical investing is a great way to make a positive impact on the world. By investing in companies that are committed to sustainability and social responsibility, you can help to create a more just and sustainable future.

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