Jasmine Birtles
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How to Find Investments That Align With Your Values (2026 Guide)
Ruby Layram
10th Dec 2025
Investing is no longer just about making money, it’s about making meaning. More and more people want their investments to reflect their beliefs. Whether thats protecting the planet, supporting fair workplaces, backing clean energy, or avoiding industries they feel uncomfortable with.
But with every fund now claiming to be “green,” “ethical,” or “sustainable,” it can feel impossible to know what really matches your values… and what’s just clever marketing.
Don’t worry, we’ve got you covered. Here’s a simple, practical guide to help you find investments that genuinely align with what you care about.
Step 1: Decide What Your Values Actually Are
Before you look for an ethical investment, get clear on what ethical means to you. Everyone’s definition is different.
Ask yourself:
What industries do I definitely want to avoid? (e.g., tobacco, fossil fuels, gambling, weapons)
What do I actively want to support? (e.g., renewable energy, women-led companies, fair labour, affordable housing)
Do I want to invest to “do no harm,” or to make a positive impact?
There’s a difference:
- Avoid funds simply screen out harmful companies.
- Impact funds invest directly in projects designed to create social or environmental change.
Knowing your priorities makes it much easier to filter your choices.
Step 2: Look at ESG Labels, But Don’t Stop There…
You’ll see a lot of funds boasting terms like:
- ESG (Environmental, Social & Governance)
- Sustainable
- Responsible
- Ethical
These are useful starting points, but they’re not regulated labels and can mean wildly different things depending on the fund manager.
ESG doesn’t always equal “good for the planet.” Sometimes it simply means the company has good internal policies, not that it’s building wind farms or cutting emissions.
Use ESG labels as a guide, but not the full truth.
Step 3: Check What the Fund Actually Invests In
This is the big one.
Click into the fund details and look for:
✔ Top 10 holdings
If a “green” fund is full of oil companies or big polluters… run.
✔ Investment screens
Do they exclude:
- Fossil fuels?
- Tobacco?
- Weapons?
- Coal?
- Poor labour practices?
Or do they say they do but still sneak in “the least bad” of the bunch?
✔ How they pick companies
Do they prioritise:
- Reducing carbon emissions?
- Social impact?
- Clean energy?
- Community support?
Or is it all talk and no detail?
If a fund is genuinely aligned with your values, they’ll be clear and transparent about why each company is included.
Step 4: Look for Independent Ethical Ratings
Luckily, you don’t need to do all the detective work yourself.
Several organisations independently review funds and score them on their environmental and social impact. Some helpful places to start:
- The Big Exchange: only lists sustainable funds
- Morningstar Sustainability Ratings: handy leaf-score system
These tools can save you hours of research and instantly show you whether a fund walks the walk.
Step 5: Decide Whether You Want a Managed or Passive Approach
You can invest ethically in two main ways:
Managed ethical funds
A professional team hand-picks companies that match specific ethical criteria.
Good for: people who want a curated, actively monitored portfolio.
Read next: How to pick a star fund manager
Ethical index funds & ETFs
These track “ethical” or “sustainable” stock indices.
Good for: hands-off investors who prefer low-cost options.
Read next: What is an exchange traded fund?
Just remember, passive funds can sometimes include companies that don’t 100% align with your values; always check what’s inside.
Step 6: Watch Out for Greenwashing
Sadly, greenwashing isn’t going anywhere.
Red flags to watch for:
- Vague language (“we care about the planet”)
- No clear exclusions
- Lots of buzzwords but no examples
- A glossy website and very little detail
- Fossil fuel or mining companies appear in the “top holdings”
If it looks too good to be true, check two more sources. Responsible investing should be transparent, not mysterious.
Step 7: Make Sure It Still Suits Your Long-Term Goals
Even the most ethical fund still needs to:
- Fit your risk level
- Match your investment time frame
- Align with your financial goals
- Offer reasonable fees
Remember: investing is about balancing purpose and performance.
There’s no point buying an ethical fund that’s perfect on paper but unsuitable for your financial future.
Final Thoughts
Finding investments that align with your values doesn’t have to be complicated. With clear priorities and a few simple checks, you can build a portfolio that:
- grows your money
- supports causes and companies you believe in
- allows you to make a positive difference without sacrificing returns
Ethical investing is no longer niche, and it’s easier than ever to get started.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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