We all like to think of ourselves as good global citizens, doing our best to make a positive impact on the world. Socially-focused investing lets you take a more direct approach, considering how your money might do good – or at least avoid harm – depending on how you use it. Here we look at some of the options around social investing and the things to think about.
Instead of investing just to benefit their own futures, investors are increasingly using their money to also make a positive difference for others. The UK social impact investing market grew from £830 million in 2011 to over £5.1 billion in 2019 according to Big Society Capital’s latest estimates.
What is social investing?
Social, or socially responsible, investing means considering the social value of an investment as well as its potential financial return. A socially responsible investment is one which can lead to positive social change either directly, such as through an impact fund, or indirectly with the company taking a broader view and embedding social principles into how it operates.