What is Green and Ethical Investment?
Green and ethical investment, also known as socially responsible investment (SRI), ethical investment and sustainable finance, describes financial services that combine financial objectives with concern for social, environmental and ethical issues. Green and ethical investment offers a means by which consumers can advance positive social and environmental goals while achieving financial returns.
Green and ethical investment may also help investors benefit from major social and environmental trends, such as government regulation on carbon emissions and the need for new and renewable sources of energy.
Useful terms:
Ethical Screening – the selection of stocks and shares in investment portfolios on ethical, social, or environmental grounds, either by excluding unacceptable shares or actively selecting shares in companies with superior social or environmental performance.
Shareholder Influence – seeking to improve a company’s ethical, social and/or environmental behaviour as a shareholder through dialogue, support for responsible management and voting at AGMs.
Green and Ethical Investment Approaches