INVESTING YOUR MONEY THE RIGHT WAY
A bright future for you and for ethical business
One third of consumers choose to buy from brands they believe are doing social or environmental good. According to a report from Unilever, people increasingly care about the impact on the planet that results from the products they buy.
04/ETHICAL INVESTMENT
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If you care about living in a sustainable world and the future of the planet, it makes sense that you’d want to invest in businesses that have that same purpose at their core. If you have two investments with identical potential return but one has a positive social or environmental impact as well, why wouldn’t you choose the investment with positive impact?
When it comes to investing, 9 out of 10 Australians expect their super/investments to be invested responsibly and ethically. But in reality, this hasn’t been happening. In 2017, only 12% of professionally managed assets in Australia were invested in core responsible investments. There are many ways a conflict may arise between our investments and our values:
- Raising money for cancer support services and it being invested in tobacco companies
- Being passionate about health and nutrition but invested in companies contributing to obesity
- A vet invested in companies where animal cruelty is part of the research process
Responsible investing covers a broad range of sectors that includes ESG (Environmental Social Governance), ethical, sustainable and impact investment. The graphic here provides an overview and you can find a more detailed explanation HERE. Source: Responsible Investment Association Australasia.
Dave Rae is a member of the Responsible Investment Association Australasia which is committed to ensuring capital is aligned with a healthy society and environment. He is also a member the Ethical Advisers’ Co-op whose members help Australians make financial decisions that are aligned with their ethical values.
In 2019, Dave was invited to join one of 4 working groups for the Australian Sustainable Finance Initiative (ASFI). ASFI is developing a roadmap:
“to help shape an Australian economy that prioritses human wellbeing, social equity and environmental protection while underpinning financial system resilience and stability. ASFI brings together Australia’s major banks, superannuation funds insurance companies, financial sector peak bodies and academia.”
Talk to Federation Financial Services about investing your money in a measurably ethical way. You can read more about ethical investment in Dave’s blog, DO WELL + GOOD.