Ethical investment – investor interest piqued?
Over the past few years, there has been a rise in the popularity of sustainable and ethical investing, as an increasingly socially conscious population has started taking an active interest in exactly where their money is going and what it is being used for.
The concept of ethical investing has been around for several decades but has become more mainstream in recent years as a result of increased consumer awareness across a range of social and environmental issues.
Why invest responsibly?
With climate change higher than ever on the political and media agenda, many people are not only looking to reduce their own carbon footprint but ensure that the companies they’re investing in are doing the same. No longer just interested in financial returns, they’re looking to invest in the world’s future as well.
The growth of ethical investing is amply demonstrated by figures from the Global Sustainable Investment Alliance1, which revealed that worldwide sustainable investing assets now total over $30 trillion – a growth of 34% (2016-18).
The coronavirus pandemic is likely to accelerate this trend, with global lockdowns prompting many to reflect on and reassess their lifestyles, priorities and impact on the planet.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
1 Global Sustainable Investment Alliance, 2018