Can You Be an Ethical Investor?

The video explores the concept of impact investing, tracing its roots from religious and moral values to the modern ESG criteria. It discusses how ESG (Environmental, Social, and Governance) factors can influence investment decisions and societal impact. The video highlights historical examples like the divestment from apartheid South Africa and examines the financial implications of ESG investing, showing that it can offer competitive returns with lower risks. It concludes with practical advice on how to start ESG investing using various tools and funds.

What are some of the societal issues that have made people question their investments?

• Increased globalization

• Technological advancements

• Climate change and human rights violations

• Rising real estate prices

What does ESG stand for in the context of investing?

• Economic, Social, and Government

• Environmental, Social, and Governance

• Energy, Sustainability, and Growth

• Ethical, Sustainable, and Green

Which historical movement is an example of protest divestment?

• The Industrial Revolution

• The Women's Suffrage Movement

• The Anti-Apartheid Movement

• The Civil Rights Movement

How did Walmart's decision to stop selling certain ammunition affect its ESG score?

• It decreased their G score

• It had no impact on their ESG score

• It increased their S score

• It decreased their E score

What did a Morgan Stanley study find about the financial performance of ESG funds?

• They are only profitable in the short term

• There is no financial trade-off between ESG and traditional funds

• They have a higher risk than traditional funds

• They consistently underperform compared to traditional funds

What is one reason ESG funds have become more affordable recently?

• A decrease in demand for ESG funds

• A reduction in ESG analysis requirements

• A price war among major fund companies

• Government subsidies for ESG funds

Which tool can help you compare ESG ratings for publicly traded stocks?

• Morningstar

• Yahoo Finance

• Bloomberg Terminal

• Sustainalytics