Although sustainability is classed as an ethical issue, there are some differences between an ethical investment and a sustainable investment.
Ethical investment involves choosing stocks, shares and other assets based on moral principles. Therefore, each investment decision should consciously align with investors ethical beliefs. Ethical investment is also known as socially responsible or conscious investment. An ethical investor should avoid ‘sin’ stocks such as companies that profit from cigarette smoking and alcohol production, and instead look for companies that follow strict ethical guidelines.
Sustainable investment, however, involves choosing stocks and shares or other assets based on their ability to have a long-term positive societal impact. One example is blue-chip companies with sustainable initiatives that exceed their competitors. of companies that deal with water waste management. Sustainable investments can refer to companies that want to solve the world’s challenges and create a more sustainable future. Although, it could also refer to