Many of us are constantly striving to find ways to make a positive impact in the world, whether that’s through donating to charity, volunteering, or voting for people and policies we believe in. And now, with how easy it is to start investing, more and more people are making an impact by investing in companies that do good for humankind. In this article, we will explore how you can use your money to invest in companies and funds that are not only profitable but also ethical.
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Invest In Companies That Share Your Values
The most direct way to help humankind with your money is to invest in companies that share your same values. For example, if you are passionate about promoting clean energy because of climate change’s disastrous effect on humankind and vice versa. You might consider investing your money in a company that creates solar panels or wind turbines. By investing in these companies, you reward them for their efforts and play your part in the company’s success so they can continue building their products or services. Additionally, the increase in their stock prices due to your investment could lead to more investments, further stabilizing the company.
Invest In Companies That Are Sustainable
Not all companies have to directly produce a green service or product to be considered an ethical investment that can help humankind. Some companies are sustainable due to their practices, for example, how they treat their employees or how much waste they produce.
By investing in a company that treats its employees fairly and gives them good benefits and pay, you are investing in humankind, as their happiness is spread outward. Similarly, by investing in a carbon-neutral company, you are helping to reduce greenhouse gasses, even if the company’s end product isn’t green technology.
Building a portfolio of sustainable companies to invest in ensures your money is helping the world and all humankind thrive.
Invest In Ethical Funds
ETFs are often safer investments than individual stocks, as they help diversify your investments. However, this doesn’t mean you can still put your money into an investment that will help humankind. Ethical ETFs focus on environmental, social, or governmental (ESG) sustainability. By investing in these ETFs, you are not only helping a large swath of ethical companies, but you’re protecting your investments from downturns in the market by spreading your money out. It’s important to note that not all ESG ETFs are ethical and use the ESG tag to boost their public perception. Through research into the companies that comprise an ETF is crucial before investing your money. An ETF classified as a public benefit corporation is a worthy investment.
Your Money Can Help All of Humankind
Rewarding companies that produce a good or service that helps humankind, or treat their employees well, can help them flourish and entice other companies to change their practices for the better. You are using your investments to vote on the future and earn money back as a reward.