The Art of Screening: Finding the Right Sustainable Funds

Investing is more than just growing your wealth; it's a way to support causes and values that you believe in. With the rise of sustainable investing, individuals are now able to align their investments with their beliefs and make a positive impact on the world. 
In this post, we will explore how the investment world deals with screening and how you can make better informed decisions when investing in sustainable funds.

Positive screening for sustainable investing

Screening for companies that match your values has not always been an easy task. But as data and tools increase in availability, investors will be able to make sure their money is making a positive impact as well as financial returns.
Positive screening is a way for funds to ensure that their investments align with their investors' values and support companies that are making a positive impact on the world. By using positive screening, funds can help create a more sustainable future and encourage companies to adopt more responsible business practices.
Examples could include investing in companies that: 
1. Have a strong commitment to reducing their carbon footprint, using renewable energy sources, and promoting sustainable practices.
2. Promote diversity and inclusion, have a strong human rights record, and support local communities.
3. Have strong corporate governance practices, including transparent reporting and responsible management of financial resources.
4. Operate in sectors such as renewable energy, sustainable agriculture, and clean technology.
5. Have a specific positive impact on the environment or society, such as affordable housing, clean water initiatives, and education programs.

Negative screening for sustainable investments

Negative screening is about funds eliminating companies from consideration right off the bat.
Generally, with negative screening, there is a preference for not investing in companies that produce weapons, not supporting nefarious activities, and not supporting ‘dirty’ activities. These are are still somewhat subjective and can range from:
- Conventional to nuclear weapons
- Tobacco to gambling
- Oil sands to nuclear energy
Where you fit on this spectrum depends on your values, and what you consider to be the line when it comes to sustainable investing.

Goodfolio Sustainable Investing Platform 

un sdg investing
Know how your portfolio is impacting the world using our up to date reporting tools. This way you can keep track of both financial and non-financial performance without having to go anywhere else.
So, where do we fit in here?
Firstly, GOODFOLIO does not decide what matters to you, nor do we make a call on what good is. Exclusion criteria and a full list of underlying companies in a fund are available for you to access and compare.
Secondly, ETFs on on our investment platform undergo a screening and categorising process to meet our transparency and sustainability information standards. 
That means it is easier than ever to invest in funds contributing to themes such as climate solutions and biotechnology. 
We also offer:
1. Fast sign up - typically onboard in less than 10 minutes
2. Screened and Categorised  ETFs - All funds are screened to meet our transparency and sustainability information standards
3. Impact reporting - up to date reports including UN SDG revenue alignment
4. Cutting edge tools -  Comparison tools to invest in ETFs based on impact, risk and returns
5. Sustainable ISA - create a new ISA or transfer your existing one with our help
6. Great customer support - we are always here to help!
Join the future of investing and start your free GOODFOLIO account today!

As with all investing, your capital is at risk.
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