How women are making more ethical investments in 2022
“In prior years, ethical investing was deemed to be more expensive with worse results; that isn’t the case anymore. However, it has become less black and white of what is ethical and what isn’t. I encourage clients to focus on what is key for their personal preferences. We want to achieve a broad portfolio which is diverse and invested in multiple countries, industries and markets.” – Rebecca Robertson
More women than ever before are making their money work harder by investing. A recent study found that in 2021, 67% of women had investments outside of retirement, in comparison with just 44% in 2018. Women are increasingly viewing their finances, not just in terms of their present situation but also in terms of where they want to be in the next 10, 20 or 30 years. Thus, investing is a vehicle women are increasingly using to prepare for the future they desire. But, not all investments are created equal and with our world currently in crisis, women are opting to invest more ethically. This article will explore how women are looking to invest more ethically in 2022, including why we need to invest more ethically and how you can be more ethical with your investments.
Why do we need to Invest more Ethically in 2022?
As a woman dipping your toes into the world of investing, you are likely to be thinking about your future, perhaps buying a property, or having something to pass onto your children, you might not be thinking about how the money you invest is actually being used. The reality is that unless you are investing in ethical and sustainable firms and funds, there is a high likelihood that your money is supporting major contributors to the climate crisis. Your investment could include supporting oil and gas corporations and therefore be promoting insecurity for others around the world.
Women and Ethical Investment in 2022
“Now we’re in the midst of another financial revolution driven by women: ethical investing.”
As we become increasingly conscious about where we spend and invest our money and the causes we are supporting, women, in particular, are moving away from funding harmful industries and are at the forefront of the ethical investment movement. The 2018 Boring Money Ethical Investing Report found 32% of women to believe that ethical investing is very or extremely important, in comparison with just 14% of men. A trend that is likely to continue, with more and more women likely to invest more ethically in 2022.
The Benefits of Investing Ethically in 2022
A common myth associated with ethical investments is that they do not perform as well as conventional investments, however, this is far from the truth. The January 2021 Crown Ratings found that sustainable and ethical investment funds have some of the highest returns! With an increase in laws surrounding sustainability and ethics as well as a drive towards greener consumption, investing in green companies who are taking advantage of this new market, can have a reduced risk factor. With ethical investing not only benefiting the planet but also benefiting investors, it is easy to see why women are looking to invest more ethically in 2022.
How Women can be more Ethical with their Investments in 2022
There is no set definition for what constitutes an ethical investment. It is therefore essential that you do your research to ensure that your investment will be doing what you want it to do. Before jumping into investing, it is worth considering your values and what ethical investing means to you. For example, are you content with ensuring that your investments do not include companies involved in damaging activities or do you want your money to be making a positive impact in specific areas?
Making 2022 the Year for Investing More Ethically
As we become more and more aware of the impact of our actions on the world around us, how we spend and invest our money is one of the most powerful ways that we, as individuals, can make a difference. Women are leading the move towards ethical investment and with high-performing funds and a reduced risk factor, it is likely women will continue to invest more ethically in 2022.
The value of investments and the income from them may go down. You may not get back the original amount invested.