Ethical Investing: Aligning Your Portfolio with Your Values
Define Your Values: Start by identifying the social and environmental issues that matter most to you. This could include climate change, human rights, corporate governance, or community development.
Research ESG Criteria: Understand how companies and investment funds integrate ESG factors into their business practices. Look for investments that meet your ethical standards and support sustainable practices.
Screening Strategies: Implement screening criteria to exclude investments that conflict with your values. This may involve avoiding industries such as tobacco, weapons manufacturing, or fossil fuels, known as negative screening.
Positive Impact Investing: Seek out investments that actively contribute to positive social or environmental outcomes. Examples include renewable energy projects, green technologies, or companies with strong diversity and inclusion policies.
Engagement and Advocacy: Consider shareholder engagement and proxy voting to influence corporate behavior positively. Engage with companies or investment managers to advocate for ESG improvements and transparency.