A word from the SIX team:
Where we invest our money matters - guiding what industries grow, which projects are funded, and whose voices are heard. It can be a powerful tool for shaping the type of world we want to see.
But we’re aware that for some people in SIX’s growing community, the concept of “ethical investing” might be quite new and unfamiliar.
We recently sat down with financial advisor Karen McLeod (Ethical Investment Advisers) to seek her reflections on how folks might get started on their ethical investing journey.
Check out Karen’s five practical steps below, and then head to the SIX app to explore companies that align with your values.
Remember, this information doesn't take into account your own personal objectives, financial situation or needs.
Karen's five practical steps to get started with ethical investing
If I were speaking to someone just starting out on their ethical investing journey, I’d say this:
Start with your values, not the products.
As someone who has worked in this field for many years, I’ve seen people overwhelmed by labels like "ESG", "sustainable" or "impact".
My advice is to keep it simple at first.
1. Clarify your priorities
What are you most concerned about? Is it climate change, human rights, animal welfare, governance, or social inequality? You don’t have to cover everything immediately.
2. Accept progress over perfection
No investment is ever 100% perfect. What matters is moving capital in a better direction and improving outcomes and returns over time.
3. Ask questions and look under the hood
Marketing claims may be quite vague. Understanding how funds actually select companies and when / why they’d remove them from a portfolio, if things go awry, is far more important than the label they use.
4. Remember, your financial goals still matter
Ethical investing is most powerful when it’s sustainable for you financially, as well as morally.
5. See this as a journey, not a destination
Your views may evolve, the market will change both up and down and your portfolio should evolve with them. Keep your eyes and ears open. Continue to question and review your portfolio performance and suitability. If you require professional support, seek this early. Many smart investors work with an adviser who specialises in ethical investing, to guide your selection of investments and regularly review their ongoing suitability.
Ethical investing is ultimately about aligning your money with the kind of world you want to support, while still building your own long-term financial security. Starting thoughtfully - even modestly - is far more important than waiting until everything feels “perfect.”
Karen McLeod is an Authorised Representative of Ethical Investment Advisers (AFSL 276544). This information is of a general nature only and does not take into account your personal objectives, financial situation or needs. Before making any financial decisions, you should consider whether the advice is appropriate to your circumstances and seek professional advice from a licensed financial adviser. When making decisions about a financial product, consider the Product Disclosure Statement and Target Market Determinations (if applicable). Most importantly past performance is not a reliable indicator of future performance.
