Ethical investments can benefit the world

The letter from Peter (April 2020) cannot be allowed to pass without comment. While it is commendable that Peter’s former employer was ethical in its dealings, many energy companies are not.

Climate change will affect us more than the pandemic, but being a longer-term problem it is easier for governments and climate sceptics to fight it for selfish or misguided reasons. Coal emissions are a major contributor to climate change and any investment in coal is deeply unethical, no matter whom and how much it may benefit in the short term. Unless global warming is addressed, we can say goodbye to the Great Barrier Reef, and how many tourism jobs does that support?

As Money has often pointed out, ethical investing is often more profitable than more conventional investing. Many of these investments concentrate on treating people properly and minimising environmental impact. Fairtrade is a good example, ensuring fairly paid coffee production with no child labour, etc.

Yes, some ethical investments and some activists do get it wrong occasionally, but to nothing like the same extent as unethical companies flout environmental and human rights laws.

Peter’s cherry-picking examples of bad outcomes gives the wrong impression of ethical investing, which generally benefits the target investments and investors alike. David

Ed’s note: This is a truncated letter from David originally sent as an email.