Ethical Investing

Question 1

What is an ethical investment?

Answer 1

When making investment decisions, some people decide to invest only in certain companies or organisations whose product, policies and practices are in line with their own beliefs and values. This is known as ethical investment (also called green or conscious or socially responsible investment).
It is becoming more common, as people become more aware of the issues and practices of businesses that can damage our society and the environment.

Question 2

Negative screening

Answer 2

avoids investing in some types of firms, for example, cigarette companies or firms that make alcohol.

Question 3

Positive screening

Answer 3

involves investing in those firms that are involved in activities that are deemed desirable, such as renewable energy or healthcare.