Ethical investing

kuratowski

Agreed, there are a number of different methods of screening, and there are many different definitions of ethical.  You really need to have a good read of the fund's prospectus, to see whether the criteria they are using are ones with which you agree.

Type_45

Even if the whole green thing is scam, it doesn't mean that it isn't worth investing in if it makes money.

Conversely, it may be "unethical" to make money out of a green scam which is defrauding tax payers under the guise of saving the planet...

We're playing 4D chess here, Ladies & Gents.

El_Torro

Type_45 said:

El_Torro said:

I think that it stands to reason that an Ethical fund will not perform as well. 

That should be the case as they are more limited and require additional management.  However, as stated above, governments are throwing tax money at them and therefore their "profits" are enhanced at tax payer expense/subsidy. "Crony Capitalism" at work.

Let's not kid ourselves into thinking that green industries are the only industries that are heavily subsidized by governments.

You clearly have a bone to pick with green industries, for whatever reason. This is going away from your original topic, which seemed to be more about ethical investing. There are many ethical funds out there which don't focus on green industries.

Type_45

El_Torro said:

Type_45 said:

El_Torro said:

I think that it stands to reason that an Ethical fund will not perform as well. 

That should be the case as they are more limited and require additional management.  However, as stated above, governments are throwing tax money at them and therefore their "profits" are enhanced at tax payer expense/subsidy. "Crony Capitalism" at work.

Let's not kid ourselves into thinking that green industries are the only industries that are heavily subsidized by governments.

You clearly have a bone to pick with green industries, for whatever reason. This is going away from your original topic, which seemed to be more about ethical investing. There are many ethical funds out there which don't focus on green industries.

"Green industries" says it all.

Thrugelmir

Type_45 said:

Even if the whole green thing is scam, it doesn't mean that it isn't worth investing in if it makes money.

Catch 22. Start up costs in a new industry are considerable.  Investors aren't going to stump up the cash unless there's a possibility of a decent return. As there's always the risk that the venture will fail. Majority of investors only invest in established profitable companies for this very reason. Their own pockets come first. 

thegentleway

Type_45 said:

Is the bottom line your only driver?  Or are you unable to sleep at night unless you're under the impression that your money isn't being spent "unethically" (according to whoever decides on what is ethical within this context)?

One of my favourite topics 😁

I think ethics is the most important thing, consequently more important than making money.

People do seem to have different opinions on what is right/wrong. For me it’s measured by well-being/suffering, so right behaviour increases wellbeing/decreases suffering and wrong behaviour decreases wellbeing/increases suffering.

Type_45

thegentleway said:

Type_45 said:

Is the bottom line your only driver?  Or are you unable to sleep at night unless you're under the impression that your money isn't being spent "unethically" (according to whoever decides on what is ethical within this context)?

One of my favourite topics 😁

I think ethics is the most important thing, consequently more important than making money.

People do seem to have different opinions on what is right/wrong. For me it’s measured by well-being/suffering, so right behaviour increases wellbeing/decreases suffering and wrong behaviour decreases wellbeing/increases suffering.

What do you invest in, then?

thegentleway

Type_45 said:

thegentleway said:

Type_45 said:

Is the bottom line your only driver?  Or are you unable to sleep at night unless you're under the impression that your money isn't being spent "unethically" (according to whoever decides on what is ethical within this context)?

One of my favourite topics 😁

I think ethics is the most important thing, consequently more important than making money.

People do seem to have different opinions on what is right/wrong. For me it’s measured by well-being/suffering, so right behaviour increases wellbeing/decreases suffering and wrong behaviour decreases wellbeing/increases suffering.

What do you invest in, then?

My USS pension is their “ethical lifestyle” option
Outside pension: split between Liontrust and Royal London’s ethical funds. Have a bit in vanguards SRI
Also invest money in others: I use givewell’s recommendations to donate to most effective charities that do the most good
In terms of investing my time/energy; i do research to reduce carbon emissions

how about you? I’d be interested in your thoughts on ethics and how they apply to your investments

Nurse2047

Hi all I use Vanguard ESG Global All Cap UCITS ETF for my Childrens isa’s and my small pension(NHS main pension) is invested in Aviva stewardship fund. 

Old_Lifer

Being  'ethical'  can  boost the  bottom line,  as an ethical product can often be sold at a higher price.

The problem is the length of time it can take to achieve that level of accreditation.

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