Have you ever wondered what socially responsible investing is all about? Not many people know of this form of investing, so they focus on putting their money on the most profitable corporations and miss out on the enormous opportunity in this niche.
Socially responsible investing or SRI is more than what meets the eye. Also known as green investing, SRI refers to the practice of investing money in companies that are engaged in ethical and socially conscious responsibility. An example is investing in corporations advocating for environmental sustainability and social justice.
Overall, socially responsible investing means that you are prioritising positive change over financial gain. It works similar to regular investments except that the company ethics and social responsibility are added to the equation. SRI can provide investors with many benefits that go beyond money. If you’re interested, then you are probably wondering: Exactly how are socially responsible investments beneficial for you?
1. Promoting goals in line with your values
As a socially responsible investor, it’s essential that you choose to invest in companies that share the same values you believe in. For example, if you advocate for a cleaner environment, go for corporations that don’t manufacture or sell products that contribute to pollution.
There is a socially responsible investment for almost all kinds of investors. Some companies focus on promoting social justice, for example; they don’t have any records of human rights violations and provide their workers with good working conditions. You can choose to invest in them.You may also put money in organisations that promote health, peace, and morality, effectively avoiding those that profit from harmful products and services.
2. Variety of investment types
SRIs work the same way as traditional investments. Because of this, socially responsible investors have a wide selection of investments to choose from. That includes mutual funds and exchange-traded funds, hedge and property funds, and micro financing.
It’s also possible for you to invest in community development financial institutions (CDFIs) that provide financial services in low-income locations
If you’re looking for a socially responsible company to invest in, consider those focusing on environmentally friendly alternatives to food production. Thatis a great market to put money in, giving you the opportunity to address animal welfare concerns. No wonder even the world’s most high-profile investors, such as Bill Gates and Richard Branson, have significantly invested in this sector.
About the Author:
Agronomics (LSE: ANIC), the AIM-listed investment company, remains the only UK based vehicle that provides the public with an opportunity to engage in a sector which is likely to become the future of our food. August saw Agronomics participate in BlueNalu’s latest fundraising round following the announcement of their First-of-its-Kind Commercialisation Strategy. When Jim Mellon and Anthony Chow return from attending the Good Food Conference, I am sure the September buzz for this hot sector will continue.