Ethical investing is a trend that has captured the market in recent years. Also known as ‘socially responsible investing’, the popular method involves investing in stocks that support positive social and environmental change. However, some seemingly ethical investments may not be quite as good as they appear. To prevent you from investing your money into a greenwashing scam, here’s how to know if an investment is ethical.
What is an ethical investment?
An ethical investment is a stock or fund that supports positive social or environmental change. This could include shares in a green fund, a charity or a sustainable company that is tackling climate change.
Ethical investments are also known as socially responsible investments and are popular among investors who want to use their money for good. Most major brokers offer ethical investment options to traders.
The rise of greenwashing
The high demand for socially responsible investing has led many companies to take advantage of the trend. As a result, a number of companies may falsely advertise themselves as ethical to attract investors. This means that traders often get caught out by companies that fail to drive the positive social or environmental change that they claim to. Falsey advertising social responsibility is…
