For over 25 years, Michael Niemczyk has curated a team of experts, including Investment Advisors, Tax Planners, and Estate Planning Attorneys. Together, they craft and oversee retirement plans for individuals, families, and corporations. Michael Niemczyk is also the author of “Will You Run Out of Money Before You Run Out of Life?™” In the following article, Michael Niemczyk and Associates discuss aligning finances with personal values and sustainable investing practices.
We often hear people say it’s wise to invest – and it most definitely is. Sometimes, however, the environment and the workforce behind the companies suffer from how businesses operate, and investors aren’t aware of it.
However, there is a way to invest in corporations that don’t affect nature or others.
Enter: sustainable investing.
But what is it?
In this article, Michael Niemczyk explains more on what sustainable investing (or socially responsible investing) is, why it’s important, and how a person can be a socially conscious investor.
Michael Niemczyk on Earning Financial Returns While Protecting the Environment and Employees
Sustainable investing is on the rise. Why? Because many investors are now eco-conscious and socially aware of how companies they invest in can impact the environment and people.
But what do ethical investors look for in enterprises?
Eco-Friendly Businesses
When corporations operate, chances are, their business leaves a carbon footprint that can contribute to pollution and global warming. But sustainable investing is also called “green” investing.
Michael Niemczyk says therefore, those who practice responsible investing avoid investing in companies that harm the environment. Instead, they seek businesses that promote environmentally conscious practices.
Some of these eco-friendly enterprises are:
IKEA
According to IKEA, they have over 935,000 solar panels in their stores and other buildings. They also added that they will “switch to 100% renewable energy across the IKEA value chain by 2030.”
Nike
Michael Niemczyk and Associates also notes that Nike designs soccer jerseys made from recycled plastic bottles. Moreover, they use fewer shoe boxes when distributing and delivering their shoes, reducing the paper waste that can end up in landfills.
IBM
IBM automates some of its operations to lower carbon emissions. They also shifted to using renewable energy.
Michael Niemczyk and Associates explain that besides the listed giant corporations and their eco-conscious operations, some ethical entrepreneurs also invest in businesses that make environmentally friendly products – such as companies that manufacture solar power, renewable energy, and electric cars.
Furthermore, they also consider the workforce who aids in the companies’ success – the people who also indirectly help investors with their financial returns.
Socially-Responsible Companies
Michael Niemczyk says that socially-responsible companies are businesses that prioritize people – their employees or the welfare of others in need. For instance, many businesses diversify their labor pool by hiring minorities like persons with disabilities, people with ethnic backgrounds, or women.
However, some corporations operate for socially beneficial causes. Such as:
Fair Trading
Fair trading practices consist of ethically sourcing products – especially if people from developing countries produce them. A company that practices fair trading is the soap-making company Dr. Bronners.
According to their website, they source their palm oil and cocoa from Ghana, Samoa and Sri Lanka for coconut oil, India for mint oil, and other countries that produce their needed ingredients to make soap.
But besides supporting small-scale farmers and manufacturers, some companies also use their brand recognition to raise awareness or donate some of their earnings to foundations that support a cause.
Corporate Activism
Michael Niemczyk notes that on the other hand, other enterprises take advantage of their success and popularity by promoting initiatives and donating to Non-Profit Organizations.
One of those is The Body Shop – the cosmetic company regularly launches campaigns to raise awareness on deforestation in Brazilian rainforests, animal testing, domestic violence, human trafficking, and many more.
Michael Niemczyk and Associates explain that besides spreading the word on global issues, companies like Amazon, Microsoft, and Starbucks help people in need directly.
But as commendable as these enterprises are for investors to support their cause, how does it benefit them financially?
Consumers Support Corporate Activism and Ethical Business Practices
In Aflac’s 2019 survey, 77% of consumers are more likely to support a business that’s “committed to making the world better.”
Michael Niemczyk says that this is a good sign when investing – because consumers feel more fulfilled that they not only purchased a new product. But some of what they spend will go to a good cause.
To entrepreneurs, investing in sustainable companies doesn’t just aid in financial growth – it also provides fulfillment that the ethical company helped people and protected the environment.
Summary
Any profitable company is ideal to invest in. However, being a stockholder or shareholder of an ethical business helps people and preserves nature. Furthermore, investing in their business provides more than just earnings – but also a sense of fulfillment.
