Ethical Investments

What are ethical investments?

Ethical investments are investments that align with personal beliefs and values. An ethical investor looks for companies that share similar values to their own and the activities of which demonstrate a commitment to those values.

An ethical investment might focus on a number of considerations, including environmental, social, or religious. For instance, you might invest in a scaleup business that produces green energy or provides interest-free lending to small or micro businesses

Some ethical investors choose to avoid certain industries, like those that support or produce tobacco, alcohol or firearms, in the same way that ethical-Islamic investors do.

It’s crucial that companies can show a commitment to their values in order to attract ethical investors. Essentially, it’s not enough to just talk the talk – companies seeking investment will need to be able to show that their actions align with their claims.

That said, basing investment decisions solely on one set of criteria is risky, including ethical considerations. After identifying an investment that aligns with the values they wish to promote, ethical investors should always scrutinise a company’s performance and finances to make sure the investment is sound.