Investors use different approaches when choosing financial products to purchase. While profit is the primary consideration of individuals who deal with stocks, bonds, and shares, others include non-traditional criteria in their decision-making. This alternative approach is known by a lot of names—ethical, sustainable, or socially responsible investing among them—and is characterized by environmental and social investments.
What exactly is ethical investing and why is it becoming a popular approach within investment and financial services? This attitude towards investing takes into account ESG (Environmental, Social, and Governance) information in analyzing financial products like Emerald Knight bamboo investments. Socially responsible investing allows shareholders to invest their money with companies that support the causes they believe in, or enact change within an organization by divesting their money.
Financial products must pass through screening before they are recommended to a green investor. Positive screens involve looking for likeable qualities and practices from a company. Ideally, the organization should engage in environment-friendly business practices, support the research and use of sustainable energy, and create jobs for developing countries.
On the other hand, negative screening involves looking for undesirable practices that will keep the investor from buying shares from a company. Examples of negative screens include involvement in arms dealing, child labor, production of tobacco, alcohol, and exploitation of human rights around the world. These screens were once the exclusive tools used by brokerage houses. However, technology has made it easier for investors to create multiple screen models to help in building their investment portfolios.
One example of a green investment is bamboo. Ethical financial products like those marketed by Emerald Knight bamboo investments allow shareholders to use their money to employ and feed villages that take care of sustainable bamboo forests which, in turn, produce a versatile construction material while maintaining carbon sinks that soak up pollutants from the atmosphere. Furthermore, bamboo is an organic material that promises high long-term returns.
Who says principle and profit can't go together? By using an ethical approach to investing, you can rest assured that your money will be used to support businesses that believe in the same causes as you. To learn more, head on over to socialinvesting.about.com/od/sristrategies/a/SRIstrategies.htm.
A Guide to Investments Like Emerald Knight Bamboo