Socially Responsible Investing: Voicing Your Opinion with Your Wallet

QUESTION:

I am worried about the world my grandkids will live in and want to invest in companies that are really trying to make a difference. How can I do that?

ANSWER:

After almost a decade of economic and market improvement, many investors are looking for ways to use their wealth to improve the world or, at the very least, make certain their wealth is not doing harm. While philanthropic endeavors are certainly worthwhile, investing in companies that strive to do good while doing well is another way of making the world a better place.

This mindset has created a rise in socially responsible investing. In its early form, such investing focused on avoiding companies that sold questionable products and services such as tobacco and gambling. In its latest form, socially responsible investors evaluate which companies to back based on a variety of metrics, including environmental impact, workforce diversity, community involvement and ethical corporate governance.

Read more about AMG’s Framework for Sustainable Investing.