At Invested Interests, we happen to know a thing or two about impact investing. We like to help people use their investments to positively impact the greater good. Of which, includes the environment. However, trying to navigate how to use your wallet for the environment can be tricky. Here is how to invest in the environment with your wallet.
What is Impact Investing?
First and foremost, to begin impact investing it is important to understand what impact investing is. Impact investing refers to investing in funds, companies, or organizations in order to make a social impact as well as a financial one. There are many types of social impacts and social divestments (choosing to not invest in a cause) that investors can choose from including investing in the environment, human rights and diversity, and peace.
The term impact investing is often used as a blanket to describe all of the various types of impactful and ethical investing. Socially responsible investing, responsible investing, and environmental social governance are all various types of impact investing. To learn more about the terminology and how to get started with impact investing, check out our resource guide: Impact Investing 101: The Ultimate Guide to Impact Investing.
What Does “Vote With Your Wallet” mean?
There is a significant amount of people who do not realize how it is possible to vote with your wallet. Meaning, you do not have to wait until national and local elections roll around for you to step up and make a difference.
Simply put, voting with your wallet is when people make socially conscious decisions about purchasing products and services from companies that align with their values. This goes a long way. Companies are motivated by profit. If consumers stop buying products and services from companies, then they are not going to succeed. In turn, if consumers boycott companies that partake in unethical practices, those companies are likely to take a stand against those unethical practices and make things right.
How Do You Invest In the Environment with Your Wallet?
Many people blindly purchase products from companies that partake in unethical practices. This can be for a number of reasons, such as accessibility and price. However, if you all take the time to discover companies that align with your values, swapping even a couple of your products and services can make a big impact.
There are many resources out there to find companies that support your values. Researching various directories and lists for companies that support the environment, for example, can put you in the right direction to find companies of all shapes and sizes that align with your beliefs and values. One example of a directory is from the B Corporation website, a certification for companies that meet high standards of social and environmental performance, accountability, and transparency. Overall, by doing your research you can find many incredible companies that support the environment. That way, you can feel good about your purchases.
Remember talking about impact investing? Another way to vote with your wallet is by investing in impactful companies that support the environment. By looking at the MSCI KLD 400, which is the socially responsible version of the S&P 500, you can see how socially responsible investments weigh against those that are not. Also, you can lean on us for help with impact investing.
How To Invest In the Environment
Here at Invested Interests, we partner with the best socially responsible mutual funds available that invest in companies solving the world’s biggest problems. These funds will only invest in companies that meet certain criteria. For example, having high sustainability and/or ESG performance. Whether you are a seasoned investor or one looking to just dip your feet in, we have something for you.
We also offer a comprehensive Environment portfolio, which invests in green companies, alternative and renewable energy companies, and companies promoting sustainability. It avoids oil and fossil fuel companies, companies that are not eco-friendly, and nuclear power companies. At Invested Interests, green investments and high returns are not exclusive of one another. A win-win!
How To Get Started
With impact investing continuing to show promising results, now is the time to hop on the bandwagon. As previously mentioned, Invested Interests is here to help you take your next steps on your impact investing journey. Managing your own investments may not be right for you, and perhaps you do not want to work with a big company either. Companies, like Invested Interests, are making it easier for people to invest with their values and not only that, but our only focus is impact investing, which gives us the opportunity to give our clients all the attention they deserve.
In this case, we talked about how to invest in the environment and now we want to help you even more. Anyone can make a difference with their investment decisions. Whether you are a pro-investor or someone new to the game, we would love to help you! Reach out to our team and invest in what matters.
