Ethical Investing in the UK – Green or Not, How Do You Choose?

 As responsible and ethical investing becomes more popular, you may be wondering how you can get started and if it is right for you. Likewise, if you want to start investing, but you are concerned about your money going into industries you do not completely agree with, you will want to consider it more. Morningstar, a global research agency, shared their data on ethical investments in the UK, that when they compared sustainable funds against traditional funds, they found that those matched or beat the returns in all categories. 


Over a decade, the average annual return for sustainable funds invested in large global companies was at 6.9 percent each year, and traditionally invested funds made 6.3 percent annually. However, like other investments, green ones may not be for everyone. It’s important to learn and understand what makes ethical investments in the UK and how you can choose the right company or cause to invest in. 


Ethical investing is an investment strategy where you pick investments according to your ethical code. That said, it involves supporting industries making a positive change, like environmentally friendly alternatives to traditional meat and plant-based foods and sustainable energy. What is ethical will depend on your beliefs and values. So, what is ethical to another investor may not be the same for you. That is why it is essential to look deeper into ethical investments in the UK and make sure that they are aligned with your preferences, and you can make the most of your choice in the long run. 


As you explore options in ethical investing, you are likely to come across many different options. When choosing an investment, you will need to screen ethical investment funds to eliminate what you perceive to be unsuitable to your preferences. Likewise, you need to conduct positive screenings to find and choose companies with a track record of excellent ESG (environmental, social, and governance) practices or are working on enhancing them.



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