As a young independent adult, one of the things I’m learning about is investing. I want to be able to invest and at the same time bring about a social change. This blog post contains basic terminologies, who this is for, how to start with sustainable investing and some resources if you are still interested. This kind of 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
Who is this for?
Sustainable investing is for everyone and according to experts it doesn’t mean low returns. It is not just for those who care about bringing about social change.
How do I start?
Whenever starting something new, research is inevitable. I’m not an expert but this might help:
- Find out if a local bank has portfolios such as socially responsible mutual funds and sectoral investments. Back in India, it was difficult for me 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 strategy.
- Hire an investment advisory firm that specialize in integrating environmental, social and governance (ESG) factors into the selection and management of investments.
- Fund projects that want to bring about social change.
Resources:
- Responsible Investment Association, Canada.
- Start Engine, an equity crowdfunding platform that connects startups with investors online, USA.
- Kickstarter, a global crowdfunding platform focused on creativity.
- Report by McKinsey: Impact investing: Purpose-driven finance finds its place in India
- What are green bonds? A Toolkit by the World Bank
- Crunchbase, discover industry trends, investments, and news about global companies—from startups to the Fortune 1000.
