What is Ethical or Sustainable Investing?
Updated: Jun 27, 2022
A concern some have about investing is related to ethics, because of the perception of capitalism as a destructive force for humanity.
I’m not sure I agree with this perspective. I think that business has led to incredible advancements in human development, but I also agree that there has been a cost.
One way of mitigating that cost is a new(ish) concept of Ethical Investing, where companies invested in are screened for their business practices according to ethical standards. This is lately called ESG, which stands for Environmental, Social Governance. A famous couple have joined the industry, aiming, like MGB, to democratize investing:
From The New York Times: Harry and Meghan Get into Finance The royal couple’s latest business partnership is all about sustainable investing. https://www.nytimes.com/2021/10/12/business/dealbook/harry-meghan-ethical-investors.html?smid=em-share
The reasons that the MGB Investing Starter Kit doesn't currently plan to hold an ESG fund are:
•As yet unproven consistent returns
•Less ease of understanding the investment for the client
•A constant need to research and rebalance
Once an investor has gotten their feet wet with the MGB Investing Starter Kit, and ESG fund might be a great next step, though.
Have you heard of ESG investing? Let me know in the comments! And as always, thanks for reading this.
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