Can You Invest Ethically Under Capitalism? Let’s Talk About It
Ooh boy - this is a biggie! I’m feeling kind of intimidated!
There’s no way I could possibly cover it all in a few blog posts and newsletters but I want to offer a good overview - a handle on the basic issues, some facts and information and links to interesting resources. Please know this is just the start!
What Is Ethical Investing?
Well. For me, that’s where the problem starts.
Investment can mean wildly different things to different people, in different places and times (the stock market, gold, housing, education, self-care, therapy… you know?).
In this series, I’m focussing on financial products - mainly equities, bonds and cash - and the different ways you access them. Most of what I talk about will apply whether you invest through ISAs, pensions or General Investment Accounts but I’ll be referring mostly to funds (collections of assets chosen by a manager according to a framework in which customers can buy a slice). You can also invest directly in shares or bonds (including Green Bonds) and there’s a whole world of community investment that I won’t even begin to touch on here.
And the ethical part of investing? I’m leaving that up to you. Broadly, it’s investing in stuff which makes the world a better place - good for people and the planet - but your individual ethics will assign different values to different issues.
I find the UN Sustainable Development Goals to be inspiring - it covers the gamut of susainability from ending poverty and hunger, to gender equality, building resilient local communities, affordable energy to peace and justice. They’re genuinely worth having a read over.
Discomfort In Capitalism
At its core, ethical investing still sits within capitalism. I’m well aware that a lot of people feel very uncomfortable with investment in general for this exact reason - ‘there is no ethical consumption under capitalism’ - I get that, and I feel the discomfort myself.
I wrestled with whether I should invest at all. Then I wrestled with whether I should help other people invest. And now, I continue to check in with myself about how to do this in a way that feels good in my soul rather than hypocritical.
The Balance
I want to emphasise something upfront - the balance point is personal - but worrying about the balance might itself be a limiting belief.
My audience is primarily UK based and we are where we are. You have to have money to survive, you have to buy your weekly shop, to use electricity and water, to have a bank account, access to the internet. Of course, some people get away without one or some of these things, but we’re living in the real world here. Every day you interact with - and therefore financially support - these businesses. So it feels wild to me that investing in them becomes the line some people won’t cross, especially when investing is one of the clearest paths toward financial stability and independence
I know this might be controversial. But if you’re thinking deeply about these questions, you are exactly the sort of person who needs enough financial breathing room to make an impact, for yourself, your community and the wider world.
You can only do the best that you can do, but you must always aim for your best!
Let’s get more into how to invest ethically tomorrow. Wooowee!
Love Eleanor. xxx
