Ethical Investment is a catch all term for a range of investment styles which go beyond financial returns to incorporate ethical, social and responsible values into the investment process, it is often referred to as ESG (Environmental, Social and Governance) or SRI (Socially Responsible Investment).
Put simply, Ethical Investment strategies have traditionally employed negative screening often called Sins Screens, ie excluding those investments which can be seen as negative such as Tobacco and Gambling, whilst also positively screening for those companies making a positive impact.
However, this type of investment has been refined further to incorporate environmental, social, or governance (ESG) factors into the investment process.
Here are some examples: