Responsible investing: Investing in a better world
The world around us is changing. Climate change, social inequality and the depletion of natural resources are pressing issues that affect us all. More and more people are realizing that they can make a positive contribution to a better world through their investments. In this blog post, we discuss the benefits of responsible investing, also known as sustainable or ethical investing. We look at different forms of investment and provide tips to get you started.
What is responsible investing?
In responsible investing, you combine financial objectives with social and/or sustainable criteria. So you invest not only in companies with good returns, but also in companies that make a positive impact on the world. This can include companies committed to renewable energy, green technologies, or social improvements.
Why choose responsible investing?
There are several reasons to choose responsible investing:
- A better world: You contribute to a better world by investing in companies committed to sustainable and social goals.
- Yield: Sustainable investments perform at least as well as traditional investments over the long term. In some cases, even better.
- Risk mitigation: By investing in companies with a good track record on ESG (Environmental, Social & Governance), you reduce the risk of reputational or financial damage from environmental disasters or scandals, for example.
- Future-proof: Sustainable investments are future-proof. Companies that fail to adapt to the changing world risk falling behind.
Forms of responsible investment
There are several forms of responsible investing:
- Ethical investing: Here you exclude certain sectors or companies that you don't want to support for reasons of principle, such as the tobacco or weapons industries.
- Sustainable investing: This involves investing in companies that score well on ESG criteria.
- Impact investing: This involves investing in companies that are specifically focused on achieving a social or sustainable impact.
How do you start responsible investing?
There are several steps you can take to begin responsible investing:
- Define your goals: What do you want to achieve with your investments? Do you want to earn a good return, make a positive impact on the world, or both?
- Do your research: There are several labels and labels for sustainable investments. Delve into the different criteria and choose a label that fits your values.
- Choose a form of investment: There are several forms of investment available, such as mutual funds, stocks and bonds. Choose a form that fits your risk profile and investment horizon.
- Find a reliable provider: There are several providers offering SRI products. Choose a provider that is reputable and transparent about the criteria they use.
Want to know more about responsible investing or want tailored advice? Then contact buro philip van den hurk. We will be happy to help you design your investments so that they not only generate financial returns, but also make a positive impact on the world.