Finance once was criticized as soulless. Ethical investing startup companies want to change that taking into account carbon footprint, gender equity, association with weapons production, and hundreds of other factors.
The Rise of Ethical Investing
Finance once was criticized as soulless. Ethical investing startups want to change that.
Morry Brown had what so many young finance graduates wanted: he was an associate at Goldman-Sachs. His career was set. A steady ramp of promotions leading to Rolexes and BMWs was his for the taking. But Morry wasn’t satisfied. What good was he doing for the world as a spreadsheet monkey? And so he quit, to found a company that merged investment with ethics: EarnWell.
EarnWell’s mission was remarkably simple: to create a portfolio of the 100 most ethical S&P 500 for the socially active casual investor. They took into account carbon footprint, gender equity, association with weapons production, and hundreds of other factors. Over 90% of the ‘EarnWell 100’ earned a perfect score on the Human Rights Campaign’s corporate responsibility, and the carbon footprint of the portfolio is 80% lower than the S&P.
Other opportunities for socially responsible investing have begun to crop up everywhere. Recently, industry heavyweight Pacific Life launched Swell investing, with portfolios in renewable energy companies, researched-focused biotechnology firms working towards disease eradication, and zero-waste business.
This comes at a time where new research has shown corporate leadership that responsibility isn’t just good PR — but profitable. If more companies put ethics before short-term gains, social activists — and investors — might just see the change they want.
Read more about how doing the right thing is just as profitable.
Apps and Platforms
EarnWell is a responsible investing app for people who care what their money supports. We make it simple to invest in companies that care about diversity, environmental sustainability, and human equality.
Swell is an impact investing platform that helps you invest in high-growth companies solving global challenges.
Robinhood believes that the financial system should work for the rest of us, not just the wealthy. Robinhood lets you invest in the stock market for free, directly from your phone or desktop.
| Written by Dante Vaisbort