Sustainable investing 101

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One of the things that young independent adults learn about is investing. How can they start out right by investing and at the same time bring about a social change? This blog post contains basic terminologies, how to start with sustainable investing and some resources.

Responsible investing goes by several names and approaches such as:

  • Socially responsible investing (SRI)
  • Sustainable investing
  • Responsible investing
  • Impact investing
  • Ethical investing
  • Green investing
  • Socially conscious investing
  • Community investing
  • Positive investing
  • Green bonds
  • Climate bonds
  • Eco-investing
  • Development impact bonds
  • Ethical banking
  • Purpose-driven finance
  • Corporate Social Responsibility (CSR) Investment

Sustainable investing is for everyone, and not just young independent adults. It is not just for those who care about bringing about social change.

Where do I start

Whenever starting something new, research is inevitable:

  • Find out if a local bank has portfolios such as socially responsible mutual funds and sectoral investments. Back in India, it was difficult to explain this to a bank or a portfolio manager because there this concept is not widespread. However, it is catching up. In 2014, India was the first country to mandate a minimum spend on corporate social responsibility initiatives.
  • Divest from investments that do not align with this thinking.
  • Hire an investment advisory firm that specializes in integrating environmental, social and governance (ESG) factors into your selection of investments.
  • Fund projects that want to bring about social change.

Resources

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