Green And Ethical Money Explained

Investing is all about making a profit but many people also want to know what their money is being used for and where and it’s invested. So, if you’re interested in ethical investment, where do you start? Well, first of all, ignore the jargon. Terms such as ethical, sustainable, socially responsible, environmental and green are commonly used but they can be misleading. Instead, work out what’s important to you. Think about whether you want to make sure your money isn’t used to support certain industries, such as making weapons, gambling - or by companies that abuse human rights. Whether you want your money to influence the actions of companies it’s invested in. Or whether you’d like to support companies that you believe are making a positive contribution to the world. Next, think about the type of investment. Would you like to invest in a fund? It can be a good way of reducing the risk because your money is spread across a range of different companies, but you may feel less in control of exactly where your money goes. You can invest directly into small scale, socially responsible or environmentally friendly projects. But make sure you research the organisations that your money’s going to be invested in because some of them can be financially risky. And take advice from an independent financial adviser who specialises in ethical money. You can find much more detailed information about ethical investing, how to find an ethical savings account and how to find an ethical financial adviser in the Growing Your Money section of SavvyWoman.