raditional wisdom tells us to invest with our heads and not our hearts. We’re cautioned about letting emotions and finances mix. And while this advice has led investors for many a year, this decade has seen a significant shift in mindset.
Enter ethical investing.
These days, more investors than ever are considering investments with their heart too. We’re seeing an ever-growing trend of investors evaluating investment opportunities based on business alignment to personal values and commitment to positive contributions to social change.
What is ethical investing?
The term ethical investing is somewhat open to subjective interpretation. It shares a camp with the likes of sustainable investing, clean investing, green investing, and socially responsible investing, all of which involve some level of mindful investment over pure profit chasing.
Essentially, ethical investing means to make investment choices based on your personal ethical code, beliefs and values. This could be by inclusion or exclusion, depending on your preference. For example, if you’re personally against smoking, you may choose to exclude any company involved with tobacco from possible investment options, irrespective of the potential return. Alternatively, if you feel strongly about renewable energy, you may choose to include companies championing sustainable energy sources, such as those listed in our Green Energy neme.
While older generations certainly show increasing interest in ethical investing, Millennials and Gen Zs tend to be at the forefront of movements and campaigns to champion change, particularly in matters related to climate change. In fact, they’ve earned a blanket term of ‘Generation Green’ as they leverage their collective consumer power to demand companies bring an end to actions responsible for destroying Earth. Socially conscious and ethical consumers pay premium prices for eco-friendly products and services. They’re vocal about environmental risks and climate change, and not afraid to boycott companies that aren’t committed to sustainability at all levels within business operations.
It was only a matter of time before this eco-conscious approach to spending extended to investment too. And, in our opinion, it’s an ideology that you’re never too old or too young to adopt!
Ethical investment opportunities on Nemo
Nemo wants to make sure you never miss out on investment opportunities. Below, you’ll find 3 of Nemo’s nemes that present investment opportunities for ethical investors:
1. Green Energy neme
This neme features a growing list of companies championing green energy and energy-efficient solutions, such as Enphase Energy, Ormat Technologies and Clean Energy Fuels, among others.
Open the Green Energy neme.
2. Electric Vehicles neme
From scooters to family cars, delivery vans to busses, electrical vehicles are taking the roads by storm. This neme lists companies involved in manufacturing, parts and servicing of electric vehicles, including the likes of Tesla, General Motors and Rivian Automotive.
Check out the Electric Vehicles neme.
3. Vegan and Plant-Based neme
The consumption of animals and their products present both ethical and environmental implications, and many (most especially millennials) choose to follow a vegan and plant-based lifestyle instead. This neme includes companies such as Oatly, Beyond Meat and Fresh Del Monte Produce to name a few.
Explore the Vegan and Plant-Based neme.
For those who make a conscious effort every day with their spending and consumer behaviours with the intent to protect Earth and her precious resources, it can be rewarding to extend the approach to investments too.
After all, there is no planet B.
(Not yet anyway. Although, the companies in our Space neme are working on it!)