Today's young adults are more environmentally and socially conscious than ever before. With this trend in community thinking, sustainable investing is gaining significant traction as folks seek to align their financial goals with their values. If you are new to sustainable investing, here's a quick crash course to get you started.

What is Sustainable Investing?

In brief, sustainable investing involves choosing investments that seek to offer financial returns while also contributing positively to society and the environment. This approach integrates ESG factors into investment decisions, aiming to support companies and projects that promote sustainability, ethical practices, and social responsibility. Want a deeper dive? Luckily, we have plenty of great blogs available that expand upon these topics! Why Choose Sustainable Investing?

If you are a community or environmentally-minded person, then sustainable investing is for you. Essentially, it allows you to align your financial interests with your values by supporting causes you care about through strategic investing.

Types of Sustainable Investing Strategies

There are many strategies that one can employ when it comes to sustainable investing. Your team at Upbeat Financial is here to walk you through all of them, using our expertise to ensure you can make confident and informed decisions for your financial future. To help you get off on the right foot, here are some terms you can look out for when talking shop with your financial advisor:

1. Exclusionary Screening - A strategy that avoids investing in companies or industries that are harmful, such as tobacco, fossil fuels, or weapons.
2. Positive Screening - A strategy that actively selects companies with strong ESG performance, supporting those that lead in sustainability.
3. Thematic Investing - A strategy that focuses on specific ESG themes that align with the investor's interests and values, such as clean energy, green technology, or social impact.
4. Impact Investing - A strategy that directly invests in projects or companies that generate measurable social or environmental benefits, alongside financial returns.

How Do I Get Started?

So, you have decided to set off on your sustainable investing journey. Congratulations! Here's how you can start off on the right path:

1. Educate Yourself - Reading this article and further exploring the Upbeat Financial Blog is a great first step in expanding your knowledge of the topic. Read more to learn about different ESG factors and how they influence investment decisions.
2. Evaluate Your Values - Take some time to sit down and reflect - Determine what matters most to you - environmental sustainability, social justice, ethical governance. You can use Upbeat Financials' questionnaire as a starting point. Jot your results down to help guide your investment research and conversations with your financial advisor.
3. Research Funds and Companies - Either on your own, or with the help of your financial advisor, research some companies and funds that align with your values. Be sure to keep an eye out for red flags such as gaps in company transparency. Look for mutual funds, ETFs, or individual companies that prioritize ESG factors.
4. Consult Your Financial Advisor - When you are ready to get started, a financial advisor with experience in sustainable investing can help you review your research and create a strategy that fits your goals.

Sustainable investing offers an opportunity to grow your wealth while contributing to the vision of a better world today and future generations. By pursuing sustainable investing strategies, you can support companies that align with your values. As the field continues to grow, sustainable investing is becoming an increasingly important part of the financial landscape, potentially offering both financial and ethical rewards for conscientious investors.