If you’ve been on the lookout for exciting investment opportunities, then you may want to consider going green with your portfolio! A changing global scene, and heightened environmental responsibility, has pushed numerous companies towards employing green initiatives, giving way to the potential for a financial return of big bucks. If you share a similar goal of making money while also making the world a better place, then there are two types of investing you should consider: socially responsible investing and green investing. Read on to learn more about the two strategies, and pick up some tips on how to get a green portfolio started!
The mere thought of starting an investment portfolio can be daunting, so greening your financial efforts might seem too overwhelming to even consider. But, don’t let that stop you – life’s biggest challenges often produce the greatest rewards! Plus, there are lots of online resources available to help you make informed choices and bring in the big bucks (hopefully). If making money while also making the world a better place is your goal, there are two types of investing one should consider: socially responsible investing and green investing. Read on to learn about the differences between the two and pick up some tips to get you started.
Socially Responsible Investing
Before you’re ready to start purchasing anything, you first need to determine where your investment interests lie. When it comes to socially responsible investing, there are two approaches one can take – exclusionary or inclusionary. Exclusionary investing is when one decides NOT to invest in a company based on moral factors like alcohol, pornography or tobacco. Inclusionary is the opposite approach – instead of withholding funds, one chooses to invest money in a company that either supports or violates a specific social goal. When you invest in companies that share and support social goals that you care about, you are supporting their efforts and increasing their stock value. On the flip side, if you select a company that engages in activities that go against your morals, you can effect change by establishing yourself as significant shareholder. This allows you to take advantage of shareholder rights to vote proxies or attend shareholder meetings and get involved in the decision-making process.
