Making the investment world a better place
So you tell me: What constitutes a “good investment?” When people invest their hard earned money into the stock market, what are they really thinking about? When they purchase shares in a company are they considering making the world a better place or making a profit? Or perhaps both?
More than making a profit
I certainly can’t speak for the majority, but I’m thinking maybe a lot of folks sway toward the direction of “Make a profit.” In fact, barring just outright polluting what’s left of the planet, I’d almost say that most people would sleep pretty soundly if they made a profit with their investments regardless of whether or not what they invested in made the world a better place. Call me silly, but it’s just a hunch. I mean – and this is an extreme example – I don’t see Donald Trump losing sleep over whether or not his investment portfolio is making the world more sustainable. That he worries about making his own world more sustainable, I’ll buy into.
But I’m not giving up that easily. There’s a logic involved here – so pay attention.
For the common good
That said, the new investment startup Goodments, which is currently in its beta stage of testing, is banking (no pun intended) on me being wrong.
Goodments is an ethical online share trading platform whose profiling system matches shares to an individual’s personal values, helping them make smarter investments that align to their own ethical and social standards. Why?
By investing in the right companies, we can influence corporate behavior and work towards a more sustainable future.
More importantly, companies that do good also tend to be more stable, lower risk, and better investments overall.
ESG is the catch-all term for the criteria used in what has become known as socially-responsible investing. Environmental, Social, and Governance(ESG) refer to “the three main areas of concern that have developed as central factors in measuring the sustainability and ethical impact of an investment in a company or business.” What’s more, there is growing evidence that suggests that ESG factors, when integrated into investment analysis and decision making, may offer investors potential long-term performance advantages.
Sustainable Investing is for investors seeking to capture the returns associated with the seismic shift from an industrial economy to a sustainable economy.
Goodments puts users in the driver’s seat as they create a profile and discover investments that match their personal values. And once a profile is created, the user is automatically added to an investor community. So you can meet like-minded investors like yourself.
I’m not entirely convinced, but I know one thing: the world is changing, and from an investment point-of-view investors need to change with it in order to survive and prosper.
In that case, Goodments may be just what the investment doctor ordered.