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ethical investing in australia

Your Guide to the Best Practices in Ethical Investing in Australia

More and more people are becoming interested in ethical investing because it is a way to realise your personal and financial goals while also thinking of others. Ethical investing in Australia is becoming more profitable now than ever, and best of all, you can still have a positive social and environmental impact through your investments.

This article presents a complete guide to the essential information you need to know before undertaking ethical investing in Australia.

What Ethical Investing Is and How It Works

Ethical investing in Australia is a type of investment that takes into account the impact that investments can have on social and environmental factors. Ethical investors choose to invest in ‘ethical’ companies that produce, sell, and distribute products and services that do not cause harm to the communities and environment surrounding them.

For example, an ethical investor may choose to invest in a company that produces organic food or non-toxic cleaning products. By investing in such ethical companies, the investor can positively benefit the environment and contribute to society.

While ethical investments are not the same as socially responsible investments (SRI), they come from the same moral and ethical standpoint. This means that an ethical investment’s financial benefits and risks are comparable to mainstream investment.

However, unlike SRI, ethical investments also include other factors in evaluating companies’ social and environmental performance. This is to ensure that the shareholders and stakeholders of the company do not cause harm to vulnerable members of society and the environment while pursuing their financial goals.

The Reasons for Ethical Investing in Australia

Ethical investors choose to invest their money in ethical companies for various reasons. These include:

  • To give back to their community – By investing in ethical companies, ethical investors can make a positive social impact on the people around them. By supporting ethical companies, ethical investors can help build a better future for themselves and their families.
  • To invest in companies that make a positive environmental impact – For environmental or environmentalist investors, supporting ethical companies may help build a better future for the natural environment.
  • To earn better returns on their investments – One of the reasons why ethical investing is becoming more and more popular is because ethical investments have outperformed mainstream investments in some instances in recent years. Investors who made ethical investments can potentially see better returns than those who didn’t.

How to Do Ethical Investing

Ethical investing in Australia is not difficult, as you can use the same tools and strategies that you would use for mainstream investments. The following are some of the easiest ways to do ethical investing:

1. Invest in mainstream investment funds. 

  • By investing in mainstream investment funds, you can invest in ethical investing while also having access to many ethical companies.

2.  Buy shares in Australian ethical companies.

  • Ethical investing allows you to ‘vote with your money’ by directly investing in ethical companies. You can buy shares directly in ethical companies you want to support, including those specialising in organic food production or renewable energy.

3. Direct your superannuation to ethical investments.

  • If you are a part of the Australian workforce, you can direct your superannuation to ethical investment funds. Some Australian super funds, for example, have ethical investment options for their members.

Let’s Get Ethical… Ethical!

Ethical investing in Australia can be great for your financial future and moral and ethical beliefs. By doing your homework and receiving the guidance of an expert financial adviser, you could experience competitive returns on your investments through ethical investing while also supporting important causes.

If you are looking for investment advisers in Newcastle and the Hunter, trust Newcastle Financial Planning Group. We are composed of experienced professionals who will help you achieve your financial goals. Book a complimentary meeting today to learn how we can work together to achieve your financial freedom!

 

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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