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Concerned about the social impact of yourinvestmentportfolio?
Unfortunately, theres no universally accepted metric to evaluate the social impact of your investments.
Its up to you to look into each new asset youre interested in and make your own judgments.
Heres a quick guide to evaluating your choices forsocially responsible investing.
Outline Your Values
To maximize your impact, its important to understand what exactly youre looking for.
In other words, what does an ethical investment look like to you?
Look Into ESG Metrics
ESG stands for environmental, social and governance.
it’s possible for you to also develop your own ESG criteria to assess potential investments.
Here are some examples of ESG values and initiatives you might look for before investing in a company.
Start on the companys website to find its self-reported values.
OnStarbucks website, youll find information about the companys culture, DEI practices and other social initiatives.
However, remember that self-reported information doesnt always paint the whole picture.
You should look into external reviews and reports, as well.
TheGood Jobs First Violation Trackeris a great source you could use to find corporate lawsuits and violations.
Here are a few other types of investments that can have a positive impact.
Crowdfunding
Crowdfunding platforms allow you to invest a small amount into startups.
For example, will the investment add or detract from affordable housing in an impacted area?
Can you prioritizeenvironmentally friendly construction?
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