10 ethical investment ideas to consider
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Want to invest in something that not only makes you money, but also has a positive impact on the world? This is essentially what ethical investing is all about.
While some industries like gambling, alcohol and weapons can be profitable, the effects that the industries have on society isn’t always good. There are also industries like oil, gas and plastic, which could be seen as contributing to problems like global warming. These are the types of industries that an ethical investor stays away from.
Finding an industry that has the potential to improve the world while also the potential to make a serious profit isn’t easy. Many of the most altruistic movements are non-profit. Donating money to charity or setting up your own charity could be a way of leaving behind a positive legacy, but it won’t help pay the bills or fund your retirement.
Fortunately, there are industries out there that can make you a return, while also having a positive impact on society. Whether you’re thinking of buying shares or starting your own business, here are 10 ways to invest your money ethically.
Green power
Countries all around the world are already shifting away from fossil fuels in exchange for cleaner and more sustainable alternatives. Some of the most promising forms of green power include wind power and solar power. In fact, these industries have already proved themselves to provide steady and fast returns.
You could start up a solar panel installation company if you’re looking for a business venture into green power. Alternatively, you could invest some money into a local wind farm – possibly buying share to help put towards a new turbine.
Sustainable forestry
Preserving woodland has so many benefits on the world including protecting wildlife and lowering global carbon dioxide levels. Right now, huge levels of deforestation are taking place. Investing your money into sustainable forestry could be a way of combating this.
There are companies like Tilhill Forestry from which you can buy woodland from. It is still possible to make money generating timber while maintaining woodland – this involves continuously replanting trees where old ones have been felled, while also making efforts to preserve local wildlife. Alternatively, you could invest shares in such a company.
Electric cars
Electric cars are the future. Petrol and diesel cars are thought to eventually be phased out in the next century. For those with a keen interest in the automotive industry, this could be a great way to invest your money.
Not many people have the money to start an electric vehicle manufacturing company. However, there could be industries related to this that you can get involved in such as installing EV charging stations or even starting a used EV dealership. Alternatively, you could consider investing your money in shares of companies like Tesla.
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Organic farming
Organic farms are dedicated to reducing chemicals in food such as pesticides and preservatives. This can have a positive impact on wildlife and on human health. In recent years, there’s been a huge rise in organic food consumers. This could be another industry to consider investing your money.
If you’ve always wanted to get into farming, you could consider starting your own organic farm. Alternatively, if retail is more your specialism, you could set up a store that sells organic foods. For those that want to invest in shares, you could consider looking into companies like United Natural Foods or local organic food startups.
Plant-based meat
The world cannot keep up the current demand for meat. More of us will have to become vegetarians or flexitarians. Plant-based meats may be able to help reduce the demand for meat.
Companies such as Beyond Meat have already seen a lot of success and could be worth investing shares in. Alternatively, you could try setting up your own plant-based meat company.
Ethical fashion
Ethical fashion companies produce clothes that use eco-friendly materials and manufacturing methods, as well as using fair labour. In fact, some of these companies actively help to give some of their profits to causes. A lot of consumers are now starting to shop at these companies and they are thought to become very profitable in the future.
If you’ve been interested in getting into fashion, you could consider starting up your own ethical clothes line or you could start a shop selling ethical clothes. You could also invest in shares of ethical fashion companies.
Plastics recycling
Plastic waste is a big global problem. While cutting down on plastic consumption is one way to fight this problem, another option is to recycle it. Recycling plastic can be very profitable. At the same time, you will be reducing the demand for new plastic and helping to eliminate current plastic waste.
You could set up a plastic recycling plant or you could start a manufacturing company that only uses recycled plastic. There may also be ways of investing in shares of plastic recycling companies.
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Eco-friendly packaging
Another way of cutting down on plastic is to start using more eco-friendly alternatives. Disposable plastic packaging is a big source of plastic pollution. Eco-friendly packaging is thought to take over in the near future.
If you’re into graphic design or manufacturing, you could consider starting an eco-friendly packaging company. Alternatively, you could look into helping local eco-friendly packaging startups by investing in shares.
Cybersecurity
Tech is a sector that is very profitable. One of the most ethical ways in which you can get involved in tech is by investing money into cybersecurity. Cybercrime is a growing problem that will continue to get worse in the future as the world becomes more digital. Investing in cybersecurity can help to combat this – and there’s a lot of money in it.
If you’re IT savvy and understand digital security, you could consider starting up your own cybersecurity company to help businesses protect themselves or recover from cyberattacks. Another option could be to invest your money into cybersecurity company shares.
Education
Education is an industry that will always be important. While a lot of education is funded on a national or state level, there has been a rise in private forms of education in recent years. This includes online courses in a variety of niche subjects. The education tech sector has also grown massively.
There are many education stocks that you can invest in as listed here at Cabot Wealth. Alternatively, you could start running your own online course.