It may seem like anything you do as an individual is only a drop in the ocean, but every little bit counts as we invest in a more sustainable future – every little bit contributes to a collective impact that has the potential to change the world.
Do you want to make a difference in the world? The truth is that you CAN make a difference by choosing to invest in companies that want to build a better future for our children and grandchildren.
When investing ethically, companies may be evaluated using environmental, social, and governance (ESG) criteria. There are many approaches a company could take to meet the criteria, e.g. implementing more sustainable waste management systems, supporting local communities or ensuring company leadership acts ethically and responsibly.
Australians have been doing it tough in recent times, with the devastating bush fires and now the coronavirus pandemic. There are companies that have dedicated resources to help those in need and these are businesses that deserve to be rewarded for their efforts. Businesses that are socially aware and that contribute to the community and society as a whole are more attractive to ethical investors.
“I have seen a shift in people’s mindsets towards becoming more socially responsible and environmentally conscious. As more people choose to invest in ethical companies, the more these businesses can grow. Investors don’t realise how much power they hold as a group and that if they all act together, they will impact which businesses achieve long-term success”, explained Suzy Shepherd, principal financial advisor at Yellow Brick Road Wealth Management on Boundary Street in West End.
How to get started
If you have funds you want to invest ethically, get in touch with your financial advisor to discuss your options. You may not have additional funds to invest right now, but you can still get started by looking at your super.
It is possible that your existing super already has a socially responsible investment (SRI) fund, in which case you can reallocate funds within your super.
If your existing super does not offer an ethical investment option, you can consider switching to another super. It’s a relatively simple process, although it does involve a switching cost. You will however need to read your Product Disclosure Statement (PDS) and seek further advice to see if its right for you, as there may be complications with changing super funds, e.g. Enterprise Bargaining Agreements or insurance implications.
The information provided above is general in nature and may not be suitable for you. Please read the applicable PDS and speak to your Financial Advisor.
More about Suzy below.