They invest in companies or initiatives that meet strict criteria for environmental, social and governance standards.
They abstain from tobacco, alcohol, weapons, or gambling.
But rather than just avoiding certain things, many investors are also looking for investments that line up with socially responsible ideals, like environmental goals.
A report by the Responsible Investment Association Australasia shows that investors can make good returns on such ethical investing. It found that the majority of investors who've put money where their morals are, have had their financial expectations met, if not exceeded.
It found 99 investors and institutions had put a total of $889 million into investments with a positive impact, such as conservation schemes, clean energy assets and health research.
But that number could increase to nearly $6 billion, if the trend continues.
The signs suggest it will, with nearly a third of investors looking at doing it.
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