Green Investing places a focus on companies which are committed to our natural environment and protecting the place which we all share together. This could include companies, or indeed projects, which are committed to reducing pollution, conserving our natural resources and other green practices which impact positively on our natural world.

If you are considering ESG Investing you will be looking perhaps at companies which are adapting their operations so as to contribute more positively to the environment, conscious about their social footprints internally and externally and very clear on their governance for example. This could include companies which are investing in cleaner, greener energy for instance. Companies you’ll be looking at will be those who are specifically meeting environment, social and governance requirements.

If you are considering Socially Responsible Investing (SRI) you will likely be seeking out investment opportunities in firms which have a focus on environmental sustainability, social justice, clean technology, corporate ethics and gender and sexual discrimination.

When we care about something, we put our time towards it. Investors are putting their money and time towards whatever that is. As a conscious investor you will be more conscious of where you are putting your money and what the impact of you doing so will be. What you believe in and what you care about will shape the conscious investor. Again, you can talk this through with your adviser so you can define your own values, shape your own consumer choices, how you can influence and how you be seen as a key player in the community you wish to invest in.

It depends on what your motivations are as there will be investment opportunities which do not suit you and your own ethics. You and your adviser will go through which companies or industries you will want to avoid and this is referred to as negative screening. Examples of this could be tobacco companies, gambling companies or oil and gas companies. You may consider these companies to have a negative impact on the environment and on society as a whole.

Value Based Investing is another approach to sustainable investing which looks at the social and environmental impact of a company’s actions, its products and those leading it. Value based investors do want to make money but not at the cost of their values. Some areas of concern which have been highlighted previously include carbon emissions, child labour, toxic waste, employees’ health and safety and animal welfare. Investors, and over recent years, the millennials who are investing, are very focused on their own values. Your independent financial adviser will go through this with you in order to give you options which will match your preferences and beliefs.

Impact Investing aims to generate specific positive social or environmental effects as well as generating financial gains. It uses money and investment capital for positive social results. If you choose this approach, as an investor, you will consider a company’s approach to corporate social responsibility and its contribution to society as a whole.