Money Makes The Arms Go Round
Do you give money to the arms trade or to industries destroying our environment? Most of us would be shocked and indignant if accused of doing this. But traditionally, when we invest we give up the right to decide where our money goes and our hard earned cash could be propping up oppressive regimes without us knowing. Ethical investment gives us the chance to control the money we invest and prove that profit and principles can work together.
Ethical investment is not a new idea. The Quakers in the 18th century used it to make a stand against the slave trade refusing to invest money in any business linked to it. More recently it was used to attack South Africa’s apartheid with the state of California withdrawing $50 billion from the country. With credentials like these it is easy to see why investment can be a powerful tool for social change.
Thinking ethically means not compromising on your values or your pocket. For example, the Ethical Investment Research Service concluded ethical funds have a lower total risk then those without ethical criteria.
There are broadly two types of ethical investing. The first is...