Written by What Is Sustainable and Ethical Investing?
- Sustainable Investing: Focuses on investments that consider environmental, social, and governance (ESG) factors, aiming for positive long-term impact.
- Ethical Investing: Involves selecting investments based on ethical criteria, such as avoiding industries that cause harm to society or the environment (e.g., tobacco or fossil fuels).
Key Principles of Ethical and Sustainable Investing
- Environmental Impact: Investing in companies that actively reduce carbon emissions, use renewable resources, or contribute positively to the environment.
- Social Responsibility: Focusing on companies that prioritize human rights, diversity, and community development.
- Good Governance: Companies with strong ethical practices, transparency, and accountability in their leadership and decision-making.
How to Start Ethical and Sustainable Investing
- Choose ESG Funds: Look for mutual funds or ETFs that specialize in companies with strong ESG ratings.
- Research Companies: Analyze companies based on their environmental practices, social responsibility, and governance policies before investing.
- Impact Investing: Invest in projects or organizations that aim to generate measurable social or environmental impact alongside financial returns.
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