Investing with heart

Do you disapprove of mining or cutting down trees? Rachel Davis explains how to choose your investments to find a balance between your own principles and profit.

Interior designer and mother of two, Stephanie Kerr, decided on ethical investing through a desire for change.

“I was sitting on a beach with my family and friends, toasting to the New Year with a glass of Champagne. The adults began the traditional round of resolutions and when it was my turn I think I surprised everyone because I had already decided I wanted to change the world – well, a little bit of it anyway,” says Stephanie.

“I was under no illusion I was going to make a dramatic difference, but I wanted to shift my perspective from just being all about me and my family.” Stephanie began by making changes at home and switched to chemical-free detergents and a four-minute shower timer. She also downsized from a four-wheel drive to a more economical saloon car, but felt there was more she could do.

“My husband works in finance and has always been in control of our investments, but after I did a little research I realised we could change where and with whom we invested to reflect our own priorities.” Stephanie began by working out what she objected to and what she valued. “I ended up with a list of commodities I wanted to steer our money away from. I didn’t want our investments to promote child labour, tobacco or alcohol, weapons or gambling. Also, I didn’t want to invest money in a company which appeared to be doing the right thing, but behind the scenes was actually producing barrels for guns or was polluting the atmosphere.”

Stephanie also looked at track records of how companies had been operating. ”I looked for proof of how companies behave in their communities and how they treat their employees. Corporate responsibility is important to me. Directors who don’t have substantial investments in their own companies worry me. If they don’t have faith in their company, why should I? I’m putting my money where my mouth is, so why shouldn’t they?” Stephanie, who initially only placed a portion of her family investment with ethical companies, has plans to look into renewable energy as a future option and has found her new approach has reaped financial rewards. “I have been really impressed with the returns we can get; they stand up well against our previous investments and the main difference is I know exactly where our money is going. It’s been a really empowering experience,” she says.

A friendly start

Elly de Gooyer is an avid supporter of environmental protection and when she decided to take control of her investments, she had a chance to express her principles. “I had never bought shares before and my only investment was my superannuation, but I was at the stage of my life when I wanted to plan for retirement.

1234   |  Single page