Companies offering ethical investment options focus on sustainability, human rights, and other social responsibilities.
It seeks to generate both financial returns and positive social change by using a “triple bottom line” approach of assessing the social, environmental, and economic impact of each investment.
While still seeking to maximize return, ethical investors may choose to exclude investments in questionable areas such as tobacco, gambling, animal testing, nuclear weapons, or oppressive regimes. They may also opt for investments in companies that are committed to responsible environmental practices, support workers’ rights and pay a living wage in addition to their own financial criteria.
Ethical investing can be a powerful tool for achieving positive behavioural change with organizations that otherwise lack meaningful regulation or enforcement when it comes to pursuing these ideals.