Sustainable and Ethical Investing: Aligning Your Values

As more and more people become aware of the impact of their investments on the environment, the future of society, and the next generations, sustainable and ethical investing has become an increasingly popular topic in the forefront today. This conscious approach to investing seeks to align investor's core values with their financial goals to make a positive impact on the world. This form of investing not only allows you to co-create with your financial planner, wealth manager, or a variety of online platforms, it invites you to lead from your values.

 What is Sustainable and Ethical Investing?

 Sustainable and ethical investing involves investing in companies that prioritize environmental, social, and governance (ESG) practices. This includes companies that improve their sustainable practices, such as how they incorporate renewable energy, waste reduction, and water conservation. It also includes companies that care about social responsibility, such as fair labor practices, human rights, as well as diversity and inclusion. Finally, it includes companies that prioritize good governance, for the areas of transparency, accountability, and risk management. It's one way to vote with your finances and claim more personal agency.

 Why is Sustainable and Ethical Investing Important?

 There are several reasons why sustainable and ethical investing matter today. First and foremost, it allows investors to align their investments with their values and feel that they can make a difference in influencing the future. By researching companies that prioritize ESG practices, investors can support the founders and entrepreneurs who care to do better and that are aware of where their products come. In the past, consumers didn't care as much about supply chain management but today, we applaud those companies who care about a more sustainable future even in the details of where materials and ingredients are sourced.

 In addition, due to social media and data on search engines, people can be judged today by how they invest, who they invest into and where they invest. Now that privacy is less, as many people have a Smart phone, people can research and/or record just about anything for upload. When company executives, or even small businesses, are willing to look into sustainable practices and ethical investing, it shows them to be positive role models in their communities. Things, such as social justice and human rights issues, only get better when we care to notice 'who else cares' compared to dis-associating. When a company gives a portion of their profits to a cause, or a purpose greater than themselves, we can feel good about buying their products and investing in them.

 Finally, sustainable and ethical investing is also important not just from a financial perspective, but from that of a family legacy or in finding an expanded purpose. Yes, it appears that companies who prioritize ESG practices tend to be more resilient and better equipped to manage risk, which can lead to better long-term performance and returns for investors. But also, this area of investing has become interesting to millennials to baby boomers alike! Investing, whether it is impact-related or through sustainable luxury, offers a way for members of families to bond when the companies have shared values with them. It also offers anyone in the HNW community to practice inconspicuous wealth.

 Getting started with sustainable and ethical investing can seem overwhelming at first, given new terms and language, but there are several resources available to help you get started. One of the first steps is to research and identify companies that prioritize ESG practices. This can involve reviewing ESG ratings and rankings, which are available from a variety of sources such as Morningstar, MSCI, and Sustainalytics. Also, be sensitive to the fact that smaller, family businesses may not have the resources to include ESG practices in what is within their control.

 You can also work with financially trained professionals, or mentors, who specialize in sustainable and ethical investing. These advisors can help you identify investment opportunities that align with your values as well as financial goals, in helping inform and educate you about your choices - in addition to business publications and media.

When you create a customized investment portfolio, this is a pillar to your holistic legacy plan because you get bring your leadership and personal development to your life's decisions. The more you get to explore and update your values, recognizing the privilege of this alone (self-exploration), the fulfilled and happy you will be about your life. With life experience, you learn what it is you can control and what it is, you can't.

 For one more intel insight, investors can also consider investing in ESG-focused funds, which are designed to invest in companies that prioritize ESG practices. These funds can provide a diversified portfolio of ESG-focused investments, and are often available through traditional brokerage accounts and retirement accounts. While the world of financial products changes with trends, your money can be a tool and an expression of your values. Your soul can feel full, compared to empty, when your money does more than accumulate or reach just for the highest ROI's, but rather funds win/win scenarios - solving both real life problems and doing good in the world.

 Conclusion

 Sustainable and ethical investing is an important trend that can allow you to align your purpose, as well as your values, with financial choices that make a positive impact in the ripple effect. By investing in companies that prioritize ESG practices, you can see your legacy as 'including great assets' that work towards a more sustainable future and help address environmental and social challenges. When it's easier than ever to vote with your online wallet, you can be both informed and proud in how your investment make a difference.

Now your next family council meeting or holiday dinner will be filled with new conversation!