Good Investments

Some people now care about what their money does, not just how much it earns

The Nobel Prize is probably the world’s most famous award. For more than 100 years, it has been paid for with money that Alfred Nobel made from selling explosives and weapons. Does that mean the weapons business is “good”? There isn’t an easy answer.

Right now, there are two big wars happening. Companies that make weapons could earn a lot of money, and people who invest in them could also make good profits. But would you feel comfortable helping those companies by investing in them? Many people would not. In the same way, some people don’t want their money supporting companies that are cruel to animals, cut down forests, create lots of pollution, or sell things like alcohol and tobacco.

Countries such as the United States have had this kind of investing for many years. It is called ESG investing. ESG stands for Environmental, Social and Governance. It means people choose companies that try to protect nature, treat people fairly and are run honestly. Today, trillions of dollars around the world are invested this way.

India is just beginning. Last month, two new stock market indexes were launched. The BSE Saatvik 100 leaves out companies involved in alcohol, gambling and similar businesses. The Nifty500 Ahimsa Index includes companies that treat animals more ethically.

This is only a small beginning, but it could grow quickly. Many Indians believe in values such as saatvik living and ahimsa, or non-violence. Research also shows that ethical investments can earn returns that are just as good as, and sometimes even better than, other investments.

When enough people invest this way, companies notice. They may pollute less, treat workers better, or stop hurting animals because they don’t want to lose investors. In a way, investing is like voting. Every rupee you invest is a vote for the kind of world you want. Money matters, but so do clean air, healthy forests, kindness to animals and fair treatment of people. A truly good business should create both profits and a better world.

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