LecturerGood morning. More and more people want their money to do good as well as grow, so today I'll explain how ethical investing actually works.
LecturerInvesting that weighs up people and the planet, not merely profit, is known as ethical investing. It's no longer a niche — it's mainstream.
LecturerThe most common framework rates companies on three things: their environmental, social and governance factors — together abbreviated to ESG.
LecturerThere are two basic approaches. The first, negative screening, simply avoids the industries you personally object to.
LecturerThe second, positive screening, does the opposite: it actively chooses firms that are doing measurable good in the world.
LecturerThe industries most commonly excluded by ethical funds include tobacco, gambling and weapons.