What is ethical investing?
The practice of ethical investing was borne from the early exclusionary strategies employed by religious organisations who wanted to align their investments with their ethical principles and ideals, for example not profiting from the slave trade.
The notion of what is considered ethical has expanded over time. Since the mid 20th century, ethical investment concerns have spread across many aspects of society, the natural world and corporate behaviour. In the 1960s, US colleges and other institutions decided they did not want to invest in apartheid South Africa. Today, a similar shift is underway with fossil fuels.
In the 21st century, the days of assessing investments solely on the basis of financial risk and return are long gone, but newer terminology and methods can be confusing. A jumble of terms are used in general discussion, often interchangeably, when they partly overlap or have slightly different meanings.
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