What are ethical investments?

Ethical Investment also known as sustainable, socially conscious, “green” or Socially responsible investing (SRI), is any investment strategy which seeks to consider both financial return and social good.

In general, socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some avoid businesses involved in alcohol, tobacco, gambling, pornography, weapons, contraception/abortifacients/abortion, fossil fuel production, and/or the military. The areas of concern recognized by the SRI industry are sometimes summarized as ESG issues: environment, social justice, and corporate governance.

“Ethical investing” is one of several related concepts and approaches that influence and, in some cases govern, how asset managers invest portfolios.The term “ethical investing” sometimes narrowly refers to practices that seek to avoid harm by screening companies included in an investment portfolio