Ethical investing: Put your money where your morals are

Ethical¹ investing: Put your money where your morals are

Ethical investing is popular with many Americans, but what is it exactly and how does it work? (This story originally aired on All Things Considered on Jan. 23, 2022.)

LEILA FADEL, HOST:

Tax prep time often has people focusing more on their finances. Shoebox filled with receipts, anyone? For people looking for new places to put whatever money is left over, ethical investing is considered a way to put your money where your morals are. But how do you make sure your money is having the impact you really want? From NPR's Life Kit², Lauren Migaki breaks down how ethical investing works and whether it might be right for you.

LAUREN MIGAKI, BYLINE³: Financial planner and consultant⁴ Manisha Thakor says ethical investing is a lot like love.

MANISHA THAKOR: Everybody has sort of their own definition and take on it. And everyone feels they've landed on it at different points.

MIGAKI: Some folks may be looking for a focus on the environment, animal welfare or gender⁵ equality, whatever your cause may be. The idea that the money you invest can generate meaningful change and a profit is mostly referred to as ESG investing.

THAKOR: ESG stands for environmental, social and governance.

MIGAKI: And like love, there are no ESG soulmates here. But there are two main strategies for finding a good match. Option one - choose a mutual⁶ fund or exchange traded fund that goes super-specific on one issue.

THAKOR: Like the ETF SHE, S-H-E, where you are just focusing on issues around gender parity⁷ in the workplace.

MIGAKI: Or choose a fund that goes really broad, one where, generally speaking, the companies in the fund are doing some form of good. But you may not agree with all the choices the fund makes. It could include a fossil fuel company that's doing really well on diversity goals or a company whose ethics⁸ are in a gray area.

THAKOR: You know, is nuclear clean energy? Or is nuclear not clean energy?

MIGAKI: And regardless of what you decide, Thakor says it's crucial to protect your investments by seeking out the right kinds of ESG funds.

THAKOR: The biggest red flags are fees.

MIGAKI: She says stick with fees of about half a percent. Otherwise, those fees add up over the course of decades, especially when we're talking about a retirement⁹ plan.

THAKOR: That's going to be the best place to start off because it's been vetted¹⁰ by your company while they're wearing a fiduciary¹¹ hat.

MIGAKI: If your company doesn't currently offer this, Thakor says send an email to your human resources department. Express an interest in socially responsible investment options for your 401(k). Thakor expects that there will be many more ESG options in the near future. And she says the industry has changed a lot. When she first started 25 years ago, ethical investing was mostly about excluding just a few specific companies.

THAKOR: Groups would start saying, I want no sin stocks - no alcohol, no tobacco.

MIGAKI: To be clear, ethical investing isn't a cure-all. It cannot erase¹² the very real harms done to the planet and society.

THAKOR: There are some people who say the whole idea of ethical investing is a farce¹³. It's just something we've done to make ourselves feel better after we've ruined the planet.

MIGAKI: But Thakor feels less cynical¹⁴. She says it's a win that the word ethical is even tied to business nowadays.

THAKOR: Over time, I believe that ESG will likely not even be a phrase in and of itself. It's just part of doing business. Of course you pay attention to these factors.

MIGAKI: And she says while we may not see immediate¹⁵ change, she's heartened to see that folks are at least trying to push that boulder¹⁶ up the hill.

Lauren Migaki, NPR News.

(SOUNDBITE OF LUSINE'S "STRATUS")

1 ethical   

adj.伦理的，道德的，合乎道德的

参考例句：

• It is necessary to get the youth to have a high ethical concept.必须使青年具有高度的道德观念。
• It was a debate which aroused fervent ethical arguments.那是一场引发强烈的伦理道德争论的辩论。

2 kit   

n.用具包，成套工具；随身携带物

参考例句：

• The kit consisted of about twenty cosmetic items.整套工具包括大约20种化妆用品。
• The captain wants to inspect your kit.船长想检查你的行装。

3 byline   

n.署名；v.署名

参考例句：

• His byline was absent as well.他的署名也不见了。
• We wish to thank the author of this article which carries no byline.我们要感谢这篇文章的那位没有署名的作者。

4 consultant   

n.顾问；会诊医师，专科医生

参考例句：

• He is a consultant on law affairs to the mayor.他是市长的一个法律顾问。
• Originally,Gar had agreed to come up as a consultant.原来，加尔只答应来充当我们的顾问。

5 gender   

n.（生理上的）性，（名词、代词等的）性

参考例句：

• French differs from English in having gender for all nouns.法语不同于英语，所有的名词都有性。
• Women are sometimes denied opportunities solely because of their gender.妇女有时仅仅因为性别而无法获得种种机会。

6 mutual   

adj.相互的，彼此的；共同的，共有的

参考例句：

• We must pull together for mutual interest.我们必须为相互的利益而通力合作。
• Mutual interests tied us together.相互的利害关系把我们联系在一起。

7 parity   

n.平价，等价，比价，对等

参考例句：

• The two currencies have now reached parity.这两种货币现已达到同等价值。
• Women have yet to achieve wage or occupational parity in many fields.女性在很多领域还没能争取到薪金、职位方面的平等。

8 ethics   

n.伦理学；伦理观，道德标准

参考例句：

• The ethics of his profession don't permit him to do that.他的职业道德不允许他那样做。
• Personal ethics and professional ethics sometimes conflict.个人道德和职业道德有时会相互抵触。

9 retirement   

n.退休，退职

参考例句：

• She wanted to enjoy her retirement without being beset by financial worries.她想享受退休生活而不必为金钱担忧。
• I have to put everything away for my retirement.我必须把一切都积蓄起来以便退休后用。

10 vetted   

v.审查（某人过去的记录、资格等）( vet的过去式和过去分词 )；调查；检查；诊疗

参考例句：

• The recruits were thoroughly vetted before they were allowed into the secret service. 情报机关招募的新成员要经过严格的审查。 来自《简明英汉词典》
• All staff are vetted for links with extremist groups before being employed. 所有职员录用前均须审查是否与极端分子团体有关。 来自辞典例句

11 fiduciary   

adj.受托的，信托的

参考例句：

• A company director owes a fiduciary duty to the company.公司董事应对公司负责受托人责任。
• He was acting in a fiduciary capacity.他以受托人身份行为。

12 erase   

v.擦掉；消除某事物的痕迹

参考例句：

• He tried to erase the idea from his mind.他试图从头脑中抹掉这个想法。
• Please erase my name from the list.请把我的名字从名单上擦去。

13 farce   

n.闹剧，笑剧，滑稽戏；胡闹

参考例句：

• They played a shameful role in this farce.他们在这场闹剧中扮演了可耻的角色。
• The audience roared at the farce.闹剧使观众哄堂大笑。

14 cynical   

adj.(对人性或动机)怀疑的，不信世道向善的

参考例句：

• The enormous difficulty makes him cynical about the feasibility of the idea.由于困难很大，他对这个主意是否可行持怀疑态度。
• He was cynical that any good could come of democracy.他不相信民主会带来什么好处。

15 immediate   

adj.立即的；直接的，最接近的；紧靠的

参考例句：

• His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
• We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。

16 boulder   

n.巨砾；卵石，圆石

参考例句：

• We all heaved together and removed the boulder.大家一齐用劲，把大石头搬开了。
• He stepped clear of the boulder.他从大石头后面走了出来。