They say that money can’t buy you happiness, but it can buy you a super-yacht with its own bowling alley and indoor swimming pool.
Okay, so maybe money really can’t buy you happiness after all. However, many of us are starting to question whether our investments are positively impacting humankind or not.
Do our investments support companies that align with our values as a human being? Are we helping to drive positive change for the betterment of society? Or are we inadvertently funding activities that might leave future generations worse off?
If you’re asking yourself any of these questions, then great news: You’re already thinking holistically about your financial future. This article will explore the various ways in which your investments might be negatively impacting humankind.
Know What Constitutes a Socially Responsible Investment
This is the first question we will examine, as it is essential to understand what a socially responsible investment is before you can make a decision about your investments.
As we’ve already said, a socially responsible investment is one that attempts to make a positive impact on society and/or the environment. This can include investments in renewable energy and organic farming, as well as divestment from other industries.
Most people assume that a socially responsible investment will have lower returns than a standard investment. However, this isn’t necessarily the case. Sometimes, the higher risk associated with a socially responsible investment can lead to higher returns. This might explain why investors are increasingly interested in socially responsible investments.
Keep Yourself Updated on Your Investments
One of the best ways to make sure you are investing ethically is to stay up to date with your investment companies and the industries they operate in. This way, you can ensure that you aren’t invested in anything that conflicts with your beliefs.
If you’re investing in funds, you should also familiarize yourself with the companies that these funds are invested in. We recommend that you pay attention to the sectors your funds are invested in and make sure that you are happy with the industries that they are invested in.
You can do this by reading the fund’s strategy and objectives and keeping track of how your funds are doing. You should also check the companies that funds are invested in so that you are aware of any ethical issues that they are facing.
Look At Where Your Money Is Going
When it comes to socially responsible investments, you should look to see where your money is going. This means researching the companies you plan on supporting with your money.
There are a number of ways you can do this. – For example, you can look at a company’s website or social media channels. If they have a website, you can read their “About Us” section to find out more about their values and mission.
Alternatively, you could also use websites that are designed to help you find ethically sourced investments. These websites allow you to search for specific industries and will show you companies that match your investment criteria.
Check If Your Investments Match Your Values
If you are unsure about the ethics of your investments, one way to find out more is to check the holdings of your investment.
Companies disclose their holdings in their annual reports, so it is relatively easy to find out what investments your funds are in. Once you have found your investment’s annual report, you will be able to find out what industries the company is invested in. You can then decide if you are happy with your investment or if you want to divest from them.
Summing It Up
Overall, there are many ways in which your investments may be negatively impacting humankind.
To avoid this, you need to be aware of where your money is going and whether or not it is being used ethically. Take time to research the industries your investments are in. This way, you will have a better understanding of how your money is being used and you can make an informed decision about whether you want to divest or not.