From “The Social Justice Investor: Advance Your Values While Building Wealth, Whether a Few Dollars or Millions” by Andrea Longton, CFA
Social justice investing is putting money to work in a project, organization, or undertaking to both generate wealth and advance social justice. Investment returns are characterized by the twin goals of sustainable financial earnings coupled with social justice advancements. “Social justice” is defined by the investor’s priorities. Common social justice priorities include combatting racism, gender inequity, climate crisis, and LGBTQ+ discriminations.
Each investor defines their own social justice priority
Whereas social justice refers to a fair and equitable division of resources, opportunities, and privileges in society, the practice of social justice investing is defined by three main tenets:
Every person has the right to reach their full potential.
Many people are shut out from reaching their full potential.
Social justice investors bridge the gap by investing in the potential of people.
Within this broad overview, each investor defines their own social justice priority. Some people may decide they would like to apply a climate justice lens broadly across their entire portfolio, investing in solar farms, companies focused on energy efficiency, and wind turbine manufacturing. Others may prioritize a more focused racial justice approach by moving their checking account to a Black-owned bank or pour their resources into creating a pathway for more indigenous Americans to gain access to homeownership. Still others may use their capital to advance gender equity by investing in women-led companies.
There are many social justice causes and it can be overwhelming to consider them all at once. Instead, I encourage you to be thoughtful about the issues that feel most important to you and start there. You can always expand your focus as you gain confidence and knowledge, broadening your approach or going deeper into a particular topic.