What you need to know about ethical investing

Socially Responsible Investing


This Sunday 22 April is Earth Day – the world’s largest environmental movement that makes an awful lot of awesome noise about how great our planet is – and how important it is that we as its guardians take better care of it.

If you value being sustainable, your financial practices can also have an impact on the world (and your wallet).

Ethical or socially responsible investing is one of the very best choices you can possibly make – for yourself, your planet and society.

Your investment portfolio can have a surprising impact on the planet. Yes, Clover can help you invest smartly to build for your future. But you can also make those smart choices count for the wider world around you.

How? Through Socially Responsible Investments or SRI for short. 

With SRIs you can direct your investments towards activities and businesses which take into account environmental, social and governance impacts of their activities.

You can read all about the ethical funds Clover has chosen.

Investing in SRIs means you can ensure your investing steers clear of things like alcohol, tobacco, gambling, pornography, weapons, and fossil fuels – and steers towards companies that place importance on the effects of environmental, social and governance impacts.

So why should you care as much as we do about ethical investing?

It dodges the negatives

A happy life means dodging the landmines – and ethical investing does the same! If you don’t feel comfortable about supporting companies that are into activities that don’t sound acceptable to you, then it’s easy to just say ‘no’.

It doesn’t sacrifice performance

So ‘doing the right thing’ by investing ethically may seem like the moral thing to do, but you don’t really want being a good person to compromise the very reason you’re investing.

But you don’t have to! SRIs focus on the industries and business which are solving some key challenges for our future and tend to have good prospects in this Earth Day age. Evidence suggest that ethical investments, more often than not, actually outperform the mainstream investing world.

It’s for the long term (and not going away)

If there’s one thing you can say about the environmental concerns these days, it’s that they’re not going away. And it’s this sort of solid, long-term vision in the areas of climate change and pollution that pairs perfectly with long-term investments that reliably work out in a volatile world.

And not only is the ethical world something that might pay off in profits, chances are the companies you’re investing in really care about the world, its environment and its animals and people. And you know what sort of companies they sound like? Companies that are run so well by great people who are definitely worth backing.

It’s smart (and trendy)

Not only is ethical investing a moral and financially sound choice – it actually might be exactly the right thing to do SOLELY for your hip pocket.

OK, so maybe some of the firms that manage the SRIs have to charge a little more, but things like climate change, resource scarcity and an ageing population are not just ‘green’ issues, they’re HUGE issues for the world. And huge issues can mean huge profits in the future – and that sounds like smart investing to us.

Ethical and sustainable investing is currently trendy for a simple reason – because of the amount of money flowing into the sector. That’s mainly because of good-hearted smart investors just like you who don’t just talk about sustainability like it’s an empty buzzword. In fact, over the past 10 years, ethical investments have tripled – and it’s still speeding up rather than gradually slowing down.

The final word: Do your bit this Earth Day

So before April 22 rolls around again, this is your chance to do the right thing: not only for your financial future, but for the future of the world we’re leaving behind for our children and their grandchildren. Because the more people who say “Yeah, it makes sense!” or “Yeah, I’ll give it a go!”, the more you’re contributing to a world that is palpably shifting towards better corporate and personal social responsibility across the board.

Happy Earth Day!