In 2019 we find ourselves at a crossroads, with a greater proportion of invested funds being deposited with ethical funds than ever before. It’s a trend that’s been on the rise since the 1970s, but in the present day, we’re seeing a major shift amongst consumers and savers of all types, towards a more socially and environmentally conscious approach to the business of making money.
With so many Americans being keen to be viewed as socially responsible, being green is a great way to drum up private investment for companies and projects. It’s been estimated that more than 8 trillion US Dollars are currently invested in sustainable schemes. And that figure only looks like growing further still, as businesses and funds see eco-friendly and socially ethical practices as being a very effective way to attract capital. Responsible investing is a two-way street, because private investors in such schemes have been enjoying growth that’s up by 25% in the last three years.
Ethical Energy
Renewable energy is a huge draw for private investment and it’s perhaps the largest of all the sectors attracting huge sums from private individuals in the United States. Power is a high-profile problem, sparking much and frequent political and social debate, worldwide.
It’s also a future-issue that’s extremely pressing for a planet with an ever-increasing population and an insatiable technological appetite for energy, to power ever more complex machines.
Energy is a very apparent issue for most, and one that’s relatively easy to understand. The way in which we harvest and produce energy in the near future has the power to make or to break the planet on which we live.
What takes place in one part of the planet can affect the population of another part of the plant. The task of finding, solving and then building alternative, clean sources of energy is one that the public can quickly get on board with. Add to that a decent return, and it’s easy to see why renewable energy projects get private investors interested.
Investing in People
Socially responsible community investment schemes are growing in popularity amongst people that want to ‘put something back’ whilst they grow savings or prepare for retirement. Such schemes are a great way to make investors feel that they’re making a difference.
In modern times, and certainly after the financial crash of 2008, the big banks have been getting a bad press, being viewed by many as institutions that hold too much sway, are not accountable, and are void of any form of social responsibility. Getting involved with socially responsible funds is a very attractive alternative to the big banks, and this seems to be true for a growing number of people.
An investment gesture as simple as depositing a portion of one’s savings in a community bank or credit union can have a far-reaching effect and can produce profound and very apparent results in neglected and economically disadvantaged communities.
Credit unions may use invested capital to fund training programs in order to kick start the commercial and industrial viability of an area, through making people more employable. Loans can also be made available to local entrepreneurs – people that often hold slim or zero chance of a start-up loan from a traditional bank, and communities can be transformed relatively quickly by such schemes.
Responsible Research
Options for those that wish to make responsible decisions while investing are many, and the terms involved can cover wide and varied ranges of schemes, business, industry, and education and community projects. It’s important, as with any investment, to do your research.
The trend toward all things ethical and sustainable does not look like slowing, and as the Western world becomes a more and more socially responsible place, as our knowledge of the implications of our indirect actions becomes easier to monitor on social media and the like, perhaps it’s not so surprising that the greenback has never been greener.
If you want to know more about what green investing is and how you can make some simple eco-friendly swaps to get started, check out this infographic:
