What are Ethical Investments?
Ethical Investments refer to an area of the financial sector where ethical principles influence the investment decision and the companies the fund managers choose within the investment.
There are lots of different types of Ethical Investments in the marketplace. In fact there are over 100 Ethical Funds available in the UK ranging from big name companies to smaller less well known providers.
There are different approaches to Ethical Investing but in the main split as follows:
Negative Screening is used when investors wish to stay away and avoid companies in certain industries. An example could be excluding companies that manufacture tobacco, nuclear energy or arms manufacturing. These types of companies are ‘screened out’.
Positive Screening is used when investors wish to include certain industries. An example are companies that contribute to a socially responsible projects such as Renewable Energy or Waste Management. These types of companies are ‘screened in’.
The information above does not contain all of the details you need to know in order to choose a product or a solution.