This week, we’re talking about socially responsible investing, as well as it’s related cousin, ESG investing. Socially responsible and ESG investing mean a lot of different things to different people, but at its core, socially responsible investing is about determining your most important values, deciding if those values should dictate your investment decisions, and if so, how you can invest your money in a way that is consistent with your most important values. 

A better way to describe this concept then, is values-based investing.

Today, I want to cover some of the more common screens that you may want to consider using if you’re going to invest your portfolio in a way that’s consistent with your values. Also, I want to reiterate that it’s not necessary that you implement socially responsible investing in your own portfolio, as the vast majority of investors choose not to go this route.

With that in mind, here are the top socially responsible investing screens: 

• The environment and carbon footprint
• Human rights issues like fair wages, working conditions, abortion, & child labor
• Weapons and war 
• Tobacco & Alcohol
• “Sin” industries like gambling and pornography
• Corporate governance and executive pay

It’s best to just stick to the top 1-2 categories that you care about the most, and not worry about the rest, since every screen you use narrows the investment options. 

That’s it for today. Thanks for listening! Tomorrow I’m going to share with you where you can find socially responsible investment options. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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