Climate change has an impact on our world and many of us want to do better to help the environment. You can make a lot of small changes to reduce the threat, but there is also a way of using your money to help fight it.
You can be a part of this change while getting both financial and social returns. It’s called impact investment and it was once considered an option for people with a significant amount of money, but it is becoming more and more accessible to middle-income investors.
Here are some options worth considering:
This fund is comprised of 25 stocks that include companies in clean energy, energy management, agriculture, clean water distribution and more. The fund has had a return rate of 31.5% in the past year.
Motif also offers investment options that focus on fair labor practices and ethical corporate behavior.
This fund selects the most carbon-efficient companies across different industries. It has eliminated investments from fossil fuels, tobacco, weapons and gambling. They have a rigorous screening policy based on ESG (environment, social and governance) performance data.
Fidelity’s ESG funds enable you to align your investment with long-term trends considered important to the overall sustainability of a business.
This fund will provide you a way to invest in companies that are responding to consumer demand for sustainable practices, or that are committed to a diverse and inclusive workspace, among others.
Vanguard’s FTSE Social Index Fund seeks to track the performance of an index that measures the investment returns of large and mid-capitalization stocks. Its performance has had ups and downs, but the past year provided the best return in its history at 20.41%.