Ethical investing refers to the practice of choosing investments based on moral principles and social responsibility. Investors consider factors such as environmental sustainability, social justice, and corporate governance when selecting companies or funds. This approach aims to generate financial returns while promoting positive societal impact.
Many investors use criteria like the Environmental, Social, and Governance (ESG) framework to evaluate potential investments. By focusing on companies that align with their values, ethical investors seek to support businesses that contribute to a better world, while avoiding those involved in harmful practices, such as pollution or exploitation.