Whether you’re looking to avoid companies that have questionable environmental practices or to reward those that prioritize gender equality, there’s an investment strategy for that.
Say hello to sustainable investing, which you may also know as socially responsible investing, a way for individuals to make a social impact with their dollars.
This investment strategy involves promoting companies that prioritize human rights and environmental stewardship and passing over those with an ethos that’s incompatible with those priorities.
“This is a style of investing that excludes certain companies that might not be good for our society,” said Douglas A. Boneparth, a certified financial planner and president of Bone Fide Wealth in New York.
“They might not have proper governance, and they might not be good for our environment,” he said.
Indeed, 1 in 3 investors have considered making socially responsible investments, according to a survey from TD Ameritrade. The firm took an online poll in March of 1,056 adults with at least $250,000 in investable assets.
Here’s what you should know.