What are the best practices in ethical investing?

What are the best practices in ethical investing?

Ethical investing focuses on aligning investments with personal values. Key practices include researching companies' social impact, considering ESG (Environmental, Social, Governance) criteria, and diversifying your portfolio to mitigate risks.

Can you explain what ESG criteria are?

ESG criteria are standards for a company's operations that socially conscious investors use to screen potential investments. 'E' refers to environmental impact, 'S' to social responsibility, and 'G' to governance practices.

How can I start investing ethically?

Start by defining your values and what issues matter most to you. Then, research funds or companies that align with those values, and consider consulting with a financial advisor who specializes in ethical investing.

Are there any risks associated with ethical investing?

Yes, ethical investing can involve risks such as limited investment options, potential lower returns, and the challenge of accurately assessing a company's ethical practices.