In recent times, we’ve all been hearing more about making smart choices with our money, especially when it comes to looking after our planet and making more ethical choices. 

One heavily discussed decision is whether to keep our money invested in certain companies or not. So, let’s take a simple look at two options: saying no to some investments (divestment) and putting our money into things that help the planet (green investments).

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Divestment: Saying ‘No’ to Bad Stuff

Imagine you’re holding shares in companies that aren’t doing great things for the environment. Maybe they’re causing pollution or not treating their workers well. Divestment is like saying, “I don’t want to be a part of this.” People do it to show they care about the planet and don’t want to support companies doing harm.

Why Some People Like It

1. Helps the Environment

Divestment allows us to distance ourselves from companies that harm nature. For instance, we can sell shares in companies that use a lot of fossil fuels and support those moving towards cleaner energy.

2. Matches Your Values

If we strongly believe in protecting the environment and being fair to everyone, divesting from companies that don’t share these values is a way to walk the talk.

3. Encourages Change

When we sell our shares, it can make companies stop and think. They might change their ways if they see their finance pool reduce and that investors don’t like what they’re doing.

Why Some People Don’t Like It

1. Losing a Voice

If we sell all our shares, we lose the chance to directly talk to companies and push them to do better. It’s like quitting a game instead of trying to change the rules.

2. Missing Out on Money

Sometimes, the companies we don’t like actually make a lot of money. If we leave, we might miss out on the chance to make some cash. This is then where your compass has to come in. 

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Green Investments: Putting Money Where Our Values Are

Now, imagine putting your money into companies that are doing good things for the planet. These could be businesses that use clean energy, make eco-friendly products, or treat their workers really well. Making green investment choices is like saying, “I want to support these guys because they’re making the world better.”

Why Some People Like It

1. Helps the Environment

By investing in companies that care about the planet, we’re putting our money where it can make a positive impact or change.

2. Good for Our Wallets

Some of these green companies are doing really well. So, not only are we helping the Earth, but we might also make some money.

3. Balancing Profit and Values

It’s a way to show that making money and caring about the planet doesn’t have to be on opposite sides. We can do both and not compromise on one or the other.

Why Some People Don’t Like It

1. It’s Not Always What It Seems

Some companies say they’re green, but they might just be pretending. This is why we need to be careful and check if they’re really doing what they claim before committing to investments.

2. Risky Business

New, cool, and innovative ideas can sometimes be a bit risky. If we put all our money into these new things, it’s like playing a game where we’re not sure of the rules. Always make sure you’re fully informed before making any major financial or investment decisions.

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Finding the Right Balance

Deciding where to put our money is a bit like choosing what games to play. We want to have fun, but we also want to play fair. When it comes to investments, we need to think about both making money and making the world a better place. It’s not always easy, but finding the right balance is key. Whether we say ‘no’ to certain investments or cheer on the companies doing good, it’s our way of making a difference – one investment at a time.

For all your investment queries and guidance, why not get in touch with our team of independent financial advisers who are here to help? Reach out to us here.

 

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.

[*] Disclaimer: Investing always involves an element of risk, and decisions should be made based on careful consideration of personal financial goals, risk tolerance, and, where possible, consultation with a qualified financial professional. The content shared in this article is not a substitute for professional financial advice, and we strongly encourage readers to conduct their own research or seek the guidance of a financial adviser before making any investment decisions.