Ethical finance refers to financial practices that prioritize social responsibility and environmental sustainability alongside profit. It involves investing in companies and projects that align with ethical values, such as renewable energy, fair trade, and social justice. This approach seeks to create positive impacts on society while generating financial returns. In ethical finance, investors often use criteria to evaluate potential investments, ensuring they support businesses that adhere to ethical standards. This can include avoiding industries like tobacco or weapons manufacturing. By promoting transparency and accountability, ethical finance aims to foster a more sustainable and equitable economy.