Building a Better World Through Emerald Knight Ethical InvestmentsGreen or ethical investments are different from mainstream investments because they are not only made based on the promise of financial returns. This type of investing takes into account the social and environmental impact that the company’s activities may have. These are the types of financial products provided by Emerald Knight consultants to their clients.
Just as “green” products and services are available to consumers who commit themselves to using them, financial products that benefit the environment and society are also available options for today’s socially-responsible investors. These investments may promote better corporate social responsibility, innovative solutions for increased energy efficiency, or greener production processes. In the same manner as one’s own principles determine how he lives his life, one’s spending patterns are indicators of his personal values.
ScreeningFund organizations have varied definitions of what is considered ethical. Investors evaluate investment portfolios or mutual funds based on different criteria. They may use either positive or negative screens in choosing which companies to invest in. Emerald Knight consultants are professionals who have backgrounds in the financial sector, and are armed with the ability to determine which companies use green and sustainable practices.
Positive ScreensThese are characteristics that investors look for in buying company stocks. A profitable company that exhibits good employer-employee relations and respects human rights all over the world is more likely to be chosen than an enterprise that exploits child laborers and subjects its employees to unsafe work environments. Strong environmental practices, and the use and production of safe and useful products are also included in an ethical investor’s buying checklist.
Negative ScreensThis type of screening eliminates companies associated with industries such as alcohol, pornography, arms, animal testing, and tobacco. Issues like arms dealing, human rights abuses, and oppressive regimes are some of those which raise alert flags among responsible investors who prefer to keep their distance from any entity associated with these. Studies have shown that negative screening is not an economically damaging practice as it does not hurt the performance of the industry being shut out.
Screening is a tedious process that requires extensive research and analysis. It is best to turn to a company like Emerald Knight which provides its clients with the ethical investment options that have passed a stringent selection process. By choosing where your money goes and how it is used, you can help in building a better world.