In this community story, one of our Financielle members shares her experience of ethical investing. Do you know or care where your money is invested?
When did you first realise that you had some control over where your money was being invested?
I remember seeing the Make My Money Matter campaign on social media and being horrified (it featured Benedict Cumberbatch and Olivia Colman), but in all honesty, I think listening to The Vault podcast made me realise how easy it was to regain that control.
How would you describe ethical investing to someone who’s never heard of it before?
It’s about being aware that where you invest your money has a direct impact on the world. Ethical investing means choosing to put your money into companies and funds that are trying to do good, like reducing their environmental impact or treating workers fairly.
Instead of your savings supporting industries or practices you might not agree with, ethical investing puts your money into businesses and projects that align more closely with your values. I see it as one of the ways I can contribute to a better and more sustainable future 😊
What does your current investment portfolio look like, and how do you decide what makes the cut?
I’ve tried to put all my money in places that reflect my values, but in a realistic way that suits everyday life. I bank with Nationwide and Monzo because they felt like more ethical options that still worked well for me (I love Monzo’s pots for following the Financielle method, for example!) Our mortgage is also with Nationwide.
In terms of my investments, I moved my old pensions into PensionBee’s Climate Plan, my current pension is invested ethically, and my stocks and shares ISA, my lifetime ISA for my retirement and my daughter’s junior ISA are all in ESG (Environmental, Social and Governance) funds.
When it comes to ‘making the cut’, I’m a bit of a research geek and look for transparency and genuine effort. I want to know that my money isn’t funding things that completely clash with my values (e.g. fossil fuels), and that it’s supporting companies trying to do better. I’m definitely not aiming for perfection – I’m just making more conscious choices where I can.
What’s the biggest misconception people have about ethical or sustainable investing?
I think there are two. The first is that ethical or sustainable investing means lower returns or giving up growth for what you believe in. I get that this can be a scary thought and we all want strong growth, but in reality ethical funds can perform very competitively.
The second misconception is that ethical investing is only for the super-rich or finance experts. I’m neither and if I can do it, anyone can! You can start with small, everyday decisions about where your money sits and what you want it to support.
What’s one thing you wish you’d known earlier about taking control of your investments?
That doing nothing is still a financial decision. I wish I’d realised earlier how important it is to know where your pension and savings are actually invested.
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The content produced by Financielle is for informational and educational purposes only and does not constitute financial advice.