Stock market glossary

Ethical investing (ESG)

Investing ethically means choosing companies also based on what they do, not only on how much they return: many investors exclude, for example, weapons, tobacco, gambling, fossil fuels or factory farming.

People often talk about ESG (environmental, social and governance): specialised agencies score companies and «ethical» funds use exclusion lists. But the criteria vary from one investor to another: some exclude only controversial weapons, others the whole defence sector, and a company may earn only a small share of its revenue from a sensitive activity.

💡 On Fanta-Trade every stock page shows the sensitive activities estimated from the sector and business description, and in the screener you can exclude the categories you don't want in your portfolio.

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