Socially responsible investing (SRI) can help you reach your goals and make the world a better place, no matter how much money you have. SRI means that you can move your money away from industries that hurt the environment, businesses that use sweatshops and child labour, businesses that test on animals, and businesses that help oppressive and violent regimes.
Like any other investor, a socially responsible one wants to get a good return on their money, but they also want to put their money into companies that do good things for society and the environment. Even though SRI limits the types of investments you can make, it hasn't caused stocks to do worse than others on the market. In fact, SRI stocks have done as well as or better than others.
Concerned Quakers and other people who didn't like how their investments helped fund the Vietnam War and the arms trade started SRI in the United States. Since then, SRI has become a growing market in the UK, growing at a rate of about 34% per year. Institutions like non-profit groups, churches, trade unions, universities, and people from all walks of life can be socially responsible investors. What they have in common is that they are both committed to investing their money in ways that are in line with their own morals and values. You don't have to have a lot of money to be a socially responsible investor, but most funds require at least 50 pounds a month.
SRI has two main ways to do things: Avoidance Screening is deciding not to invest in certain industries, such as those that treat workers unfairly, do business with governments that aren't friendly to business, have bad environmental records, test on animals, make weapons, or sell tobacco. Affirmative screening is the process of actively looking for investments in things like alternative energy and natural foods, as well as companies that care about their workers, communities, and the environment.
