There are a lot of ways to make money, but not all of them are socially responsible. Socially responsible investing (SRI) is a type of investing that screens for companies that meet certain criteria related to environmental, social, and governance (ESG) factors.
SRI is a way to use your money to support humankind causes and companies that you believe in while also getting a financial return on your investment. These kinds of investments can be made in stocks, bonds, and mutual funds.
Six ways to effectively help humankind through SRIs include;
1) Environmental Sustainability
One of the main goals of SRI is to address environmental issues and promote sustainable practices. This can include investing in renewable energy, clean technology, or companies working to reduce their carbon emissions. For example, you might invest in a company that manufactures electric vehicles, which is a great way to make a return on your investment while also helping to break people’s dependence on fossil fuels.
2) Social Justice
SRI also focuses on promoting social justice and investing in companies that positively impact society. This can include companies that provide fair wages and good working conditions for their employees or those that are working to improve access to education and healthcare. For example, you might invest in a company that provides affordable housing or works to improve access to education in underserved communities.
3) Governance
Investing in companies with good governance practices is another way to help humankind through SRI. This includes companies that are well-managed and have strong board oversight. For example, you might invest in a publicly traded company with a good record of disclosure and corporate governance.
4) Local Investing
Most investors are familiar with investing in big companies traded on major stock exchanges, but you can also invest in smaller, local companies like startups and businesses in your community. By investing in local companies, you can have a positive impact on both the economy and society.
5) Green Investing
Green investing is a type of SRI that focuses on investing in companies working to protect the environment. This can include companies involved in renewable energy, clean technology, or working to reduce their carbon emissions. For example, you might invest in a solar company, which will help realize renewable energy goals.
6) Community Development
This is another type of SRI that focuses on investing in underserved communities. This can include companies that are working to improve access to education, healthcare, or housing. For example, you might invest in a company that provides affordable housing or works to enhance access to education in underserved communities.
Conclusion
Investing in companies working to improve humankind can be a great way to make a return on your investment while also making a positive impact on society. These are some of the many ways you can help humankind through SRI. Do your research and consult a financial advisor to find the best way to invest your money to help society.