The 18th-24th of October saw the debut of Ethical Clothing Week in Australia. This focus on ethically sourced and locally made textiles, clothing and footwear is particularly relevant as we emerge from Covid-19 lockdown. Supporting independent businesses will go a long way to help our local communities economically rebuild.
From a financial perspective, there is evolving and continuing discussion about ethical investment. Many people are choosing to invest their funds in products that are seen to have an impact in both social and ethical environments.
What is ethical investment?
In theory, investing ethically allows people to choose whether their cash, superannuation or share portfolio can make a positive change for the society and environment. Also known as ‘responsible’ or ‘sustainable investing’ this holistic approach considers ‘social, environmental, corporate governance (ESG) and ethical themes’ Responsible Investment Association Australasia (RIAA) as well as financial performance and risk. Rather than investing in products such as tobacco and armaments, which may be seen as harmful or unethical, there has been a significant increase in companies aligning their capital investments with products that benefit our global society, environment and economy.
Investment and fashion – is there a link?
Similarly, Donna Cameron, a Melbourne-based personal style specialist, works with people who wish to reduce their carbon footprint, especially through their fashion choices. Her free download ‘Ethical Fashion: The Good, The Bad’ explores clothing companies who behave ethically, as well as those who are irresponsible in their choice of environmental impact and supply chains.
Donna’s program, ReFashion Your Footprint aims to change the way people consume fashion so they will:
Save money
Look great
Reduce their fashion footprint
Support their ethical mindset
Added to this, her work with Fashion by Foot ethical fashion walking tours introduces consumers to ethical designers and provides them with a ‘personal shopper’ experience.
Align your ethics with your investments
Just as there are questions surrounding the effectiveness of ethical fashion choices, the ethical investment movement continues to experience criticism and detraction. As with all ideals that could challenge the status quo, things are not always as they seem and will be subject to criticism. It is important for the ethically-minded investor to be aware and conduct their own research to find companies that align with their own personal ethics.
https://www.themonthly.com.au/nation-reviewed-james-kirby-myth-ethical-investment–243#mtr
https://www.fool.com.au/2019/03/10/the-inconvenient-truth-about-ethical-investing/
https://www.australianethical.com.au/
What else can you do?
Other than making the choice to invest in companies which align with your individual economic and social ethics, there are many simple steps you can take to make an impact on your world. For example:
Take shorter showers
Be aware of ways to conserve energy
Install solar panels to reduce your reliance on fossil fuels
Drive less, use public transport and bicycles
Ditch ‘Fast Fashion’ and choose to purchase clothes from companies that operate ethically
Reduce waste – carry a ‘keep cup’, recycle where possible
Source locally
Support local business
Buy fresh, locally-grown produce
Reduce your consumption of meat
Don’t over-commit financially
Please reach out if you would like us help you make a bigger impact on the world – contact Natallia at truwealthadvice.com.au
If you would like to improve your relationship with money and plan for your future, please contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au
General Advice Warning: The information in this communication is provided for information purposes and is of a general nature only. It is not intended to be and does not constitute financial advice or any other advice. Further, the information is not based on your personal objectives, financial situation or needs. You are encouraged to consult a financial planner before making any decision as to how appropriate this information is to your objectives, financial situation and needs. Also, before making a decision, you should consider the relevant Product Disclosure Statement available from your financial planner.