There are many issues with regards to the world that we live in. Our climate and the current state of the world’s economy are general worries in the society that we live in, yet are always showcased on the news. Recently, the economy is something that has been publicised immensely. This is because of the worrying time ahead that have been predicted by the experts, as these are tight economic times for the majority of the population.
The topic of global warming on the environment is an area that has been spoken about largely over the past few years. With the recent report indicating that the world’s population has reached 7 billion for the first time, the impact and the strain on the world’s natural resources are set to be tested in the next few years. Other factors such as an increase greenhouse gases from car users all over the world for example, have played their part in this overall greenhouse effect.
The impact of trees in this day and age is highly important. They are being harvested at a worrying rate just in order to keep up with the demands of the global wood processing industry, as they are essential to help with the environment. Investing in something ethical not only helps the environment, but it can also help you financially in the long term.
Ethical investment – What Exactly is it?
You may have come across the words ‘responsible’ or ‘socially responsible investing’ before. These are generally associated with being ‘green’ or ‘ethical’ even if they mean the same thing. The green and ethical investment is the impact of investing in society and the environment, whilst seeking a financial return. The importance of the social and the environmental standards are of high interest especially when investing in this particular venture.
An ethical investment is known as an investment that aims to maximise on both the financial return and contribute to social welfare. The idea promotes the environmental aspect of diversity. These investments add concerns about the social or environmental issues to the ones of risk and return, as elements of equity portfolio construction or activity.
Should you invest ethically?
There is a larger importance today in looking after your money for the benefit of your future, especially when you approach your retirement age. Today, there is a greater amount of money borrowed and invested by the financial services, including banks, pension funds, insurance and investment companies. This process is completed on your behalf, even if they are your pension, savings or investment, where you do not have a say in what happens to it.
By making the decision to buy in green and ethical investments is a positive choice that you can make. This is because your money will work for you, but it will also contribute to society and the environment most of all. In doing your bit for the environment such as recycling for example, it makes sense to look into the ethical financial choices too. Choosing to invest green and ethically, has the sole aim that allows you to make money and make a difference in society.
The importance of many companies is to maximise profit by any means possible. People would generally agree that making a greater financial return is a priority, but not at any price. As ethical investments come, it is possible to produce a profit with many principles still intact. There are companies that prove this idea, by becoming more responsible corporate citizens and being more profitable, not less. If you are able to get your investments correct the first time round, it will reward you with dividends as well as helping you to pay your saving as well.
For a long term gain, are they worth thinking about?
Are you thinking of investing ethically? If so, there are many positives that can come out of this venture is that it can secure your future in the long term as well as helping the environment out, in which you will be a part of.
Investing in an ethically and socially responsible way can be forecasted as a more reliable medium to long-term strategy. There are still people who are more than happy to make money at the expense of others. The trend for individuals, charities and companies is to seek profit responsibility via the ethical investment method. The majority of the socially responsible investments are in reference to the positive aspects of business life. These include the respect for the community and the environment.
The problems that arise when investing can cause an overall issue. The savings, investments or pension payments of thousands of people are all assembled together, which is then invested back into the stock market. This money is then invested into companies, whom have the aim of maximising the return at any cost possible. This is your money and your future. The thought is how are you able to ensure that your future is not being destroyed by your own investments? The economics that are compromised with the ‘getting rich quick’ principle can be so destructive to your personal investment. The reason behind this is because they work against all of the laws of sustainable growth, which is working within the limits of the earth natural resources.
The opportunity of the ethical and social investment is a remarkable option as it can offer you the opportunity to avoid those companies whose activities that you would not want to support. This can be achieved by investing to those who operate with a moral framework, reflecting their own moral stance. If you choose to invest ethically, you will be doing your part for the environment as well as contributing to the overall state of the climate. It will reduce your carbon footprint and stop the rainforest from being cut down. This is where the ethical investment aims to help you financially as well as contributing to the continuous development of the environment.