Have you ever wished that there was a simple way to know which companies are in line with your values when investing? Soon, there will be! Thanks to the hard work of three vegan finance professionals from a research firm called Beyond Advisors, starting on June 6, 2018, it will be possible to quickly and easily figure out which companies are worthy of your support as an investor. All you will have to do is look at the U.S. Vegan Climate Index, a comprehensive list which, according to Forbes, “excludes companies listed on the Solactive U.S. Large Cap Index … that are involved in animal testing, animal-derived products, animals in sport and entertainment, fossil fuel, energy production from fossil fuel, other environmental and human rights concerns, military and defense, and tobacco.”
Claire Smith, one of the creators of the U.S. Vegan Climate Index, reportedly noted that a large portion of the index is dedicated to organizations that put forward environmentally-conscious solutions. In Smith’s words, “As compared with an exposure to the Solactive U.S. Large Cap index, an investor in the new index will avoid funding the slaughter of 13 animals a year for every $1,000 invested.” Furthermore, a portion of the profits generated by the index will go to Beyond Cruelty Foundation, a nonprofit based in Switzerland which promotes animal advocacy and rescues animals subjected to exploitation and other forms of abuse. That’s definitely something you can feel great about supporting!
As an added bonus, many of the businesses in the exciting new index are in great shape financially as compared to those that didn’t make the list. According to Smith, on aggregate, companies in the index have a total improved performance of close to 30 percent over five years. As Smith told Forbes, the fact that environmentally- and socially-conscious businesses are doing better can be attributed to “the broken business models of companies that exploit animals and damage the environment.” In her expert opinion, “There’s no future in these industries if they carry on doing what they’re doing. This is why we’re confident that the outperformance will continue, or these companies will change in a way to make them admissible to our index. It’s fairly obvious, for example, that [meat company] Tyson is trying to transform itself as a business, and as soon as it goes 100 percent plant-based, it would be admissible.”
When the U.S. Vegan Climate Index goes into effect on June 6th, it will be calculated and published in real time under the Bloomberg ticker “VEGAN.” In addition to the index, Forbes reported that they expect similar creations to pop up which are also designed to help consumers invest in organizations devoted to minimizing their effects on our Earth and its inhabitants. We certainly look forward to more developments in responsible investing that puts our planet first!
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