Yep, money pretty much rules over our modern and struggling planet. This can leave us in a dilemma regarding investment, ethics and return; and this is often the case for marginalised communities, as it isn’t always just about money — it’s also about alignment with values.
Whether you’re working towards a secure and comfortable retirement or trying to grow wealth, I’m here to tell you that investing ethically and with a values-based ethos is possible.
You can align your hard-earned money with your principles, and even help change the world while you’re doing it.
Ethical investing is like online dating. There’s no point in swiping right on a company that looks good on paper but doesn’t share your values. Values-based investing means you can avoid companies that negatively impact the environment, wellbeing and health.
It isn’t easy to do this within a mainstream managed investment option, as you have very little power over where they invest your money, and set portfolios are likely to include companies that do not support equality or diversity programs and may have even recently removed protections that safeguard vulnerable communities. The way to achieve ethical investment is by taking back your power of choice and using a mix of direct or managed investment options to get the best value alignment possible.
It’s often the case that companies roll out rainbows to attract queer customers but don’t back it up with any action.
Here are two ways to help spot those fakers that just want your hard earned money.
1. Visit the Australian Workplace Equality Index pid-awei.com.au Companies with high scores aren’t just talking the talk, they’re walking the walk.
2. Study up on companies and inquire directly if they support worthy causes and have inclusive policies. You’ll quickly see if they are just here for your money or if they actually care.
It isn’t easy to achieve 100% alignment, but you can implement a more ‘overall’ values-aligned approach. A small step is still a step.
Often, people think ethical investing means sacrificing returns. In fact, companies with strong environmental, social and governance (ESG) practices often outperform their less responsible peers. Businesses that treat their employees well, care about the planet and manage risks responsibly, tend to be more sustainable in the long run.
You can check out value-based credentials at the Responsible Investment Association Australasia responsibleinvestment.org — you don’t have to choose between doing good and doing well.
Every pink dollar you invest has the power to shape industries, support communities and drive positive change.
By choosing ethical investments, you’re not just growing your wealth, you’re helping build a world where everyone can thrive. And let’s be real, isn’t that what is important at the end of the day? We are all human beings and have the right to flourish and live our lives the way we want!
In Australia, initiatives like the National Action Plan for LGBTIQA+ Health highlight areas where targeted investment can make a real difference — whether it’s improving access to healthcare or addressing mental health challenges in our community.
It can all sound a bit overwhelming and involves some work, but don’t worry — you don’t have to go it alone. A professional financial adviser can help guide you on the path to making the world and your life a better place through ethical investment.
For more details about this article visit: Money Mechanics
Scott Malcolm has been awarded the internationally recognised Certified Financial Planner designation from the Financial Planning Association of Australia and is Director of Money Mechanics. Money Mechanics is a fee for service financial advice firm who partner with clients in Melbourne, Canberra, Newcastle and Sydney to achieve their life and wealth outcomes. Money Mechanics Pty Ltd (ABN 64 136 066 272) is a Corporate Authorised Representative (No. 336429) of Infocus Securities Australia Pty Ltd (ABN 47 097 797 049) AFSL and Australian Credit Licence No. 236523.
The information provided in this article is of a general nature only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness having regard to your own objectives, financial situation and needs.
