Your super fund invests your money for you, but did you know you can have full control on where these investments are made and whether they are ethical or not?
Your money could currently be invested in companies that don’t align with your values. Instead, you can make a positive impact on the world by ensuring your retirement funds are being used to support better outcomes for not just people, but the environment too!
Ethical investments – or environmental, social and corporate governance (ESG) investments regularly outperform the market average, and they contribute to a brighter future for our world. When you invest in ESG investments, you are investing for the betterment of the world. In addition, these investments do not cause harm to anyone.
But if you’re not yet familiar with what environmental, social and corporate governance and ethical investments in general are, we’re here to tell you all about them.
Why Ethical Investments Are Important
Investing means that your money will go towards any company or organisation and help them grow. When your money is invested in companies with little regard for the environment or social impact, that may mean your money is being used in damaging ways. This means you may be unintentionally providing unethical companies with the additional power to cause harm in their communities and the world.
On the other hand, investing in ESG can give you great financial returns and create a positive impact on the same scale.
Ethical investment options can sit anywhere on the risk spectrum – from high growth to conservative.
So, depending on your risk portofolio, you can feel comfortable in choosing the investment option that’s right for you. Organisations combating climate change, poverty and other vital causes need investments to grow their operations and be able to continue making positive changes.
ESG is important because it considers the future of the next generations.
The impact that corporations create on the environment and society could have a lasting longer effect, and contribute to creating a brighter future for all. When you invest ethically, it’s fair to say you will be leaving a positive mark on the world, by contributing to creating a fair, kind and habitable world for the generations to come.
The Positive Impacts of ESG
Companies with excellent ESG practices are continually creating a positive impact on the world. You can help these organisations grow the scope of their impact, and gain peace of mind knowing that you’re making a brighter future for the planet while also growing your retirement savings.
Does planning for retirement and making the world better at the same time sound good to you?
Some practices that improve an organisation’s ESG values include:
- Limiting their carbon footprint
- Investing in carbon offsetting projects (reforestation, recycling)
- Having excellent corporate policies
When you invest in an ethical super fund, you create a positive impact on our world and boost your retirement savings at the same time. You can expect your money to be put to good use, and you can have a sense of fulfilment as you retire. You can be confident enough to say that you’ve made contributions to the betterment of the world.
Novo Wealth offers one-on-one financial advice for people who want a secure, professional and ethical plan for their finances in a plight to make the world a better place.
We provide financial planning in Adelaide, with a special focus on social activism and planning for executive retirees, professional women and business owners.
We will create a personalised financial plan for you as an individual so you can achieve your life goals. And help save the world!
IMPORTANT; This information is general in nature only. It does not take into account your individual circumstances. We recommend that you seek professional advice before making any investment decision.