Finance

Cruelty-Free Investing

23 August 2020

If you have gone vegan to reduce harm to animals and the environment, it makes sense to extend that philosophy to your finances. Traditional investment funds often include companies involved in animal agriculture, animal testing, fossil fuels, and arms manufacturing. Cruelty-free investing means putting your money into companies and funds that align with your values.

What Is Ethical Investing?

Ethical investing — also called socially responsible investing (SRI) or ESG investing (environmental, social, and governance) — involves choosing investments based on ethical criteria alongside financial returns. For vegans, this typically means excluding companies involved in:

  • Animal agriculture and factory farming
  • Animal testing (cosmetics, pharmaceuticals)
  • Leather, fur, and wool production
  • Fossil fuels and deforestation
  • Arms, tobacco, and gambling

Vegan-Friendly Funds

Several investment funds now specifically screen out animal exploitation:

  • US Vegan Climate ETF (VEGN): The world's first vegan ETF. It tracks companies that meet strict vegan and environmental criteria, excluding those involved in animal testing, animal-derived products, fossil fuels, and weapons. It is listed on the NYSE and has performed competitively.
  • iShares MSCI ESG Screened ETFs: While not specifically vegan, these funds exclude controversial weapons, tobacco, and thermal coal. A good starting point for ethical investors.
  • Triodos Bank: A European ethical bank that offers investment funds focused on sustainability. They screen out animal testing and factory farming.

Platforms for Ethical Investing

  • Wealthify: UK-based platform offering an ethical investment plan that screens for ESG criteria.
  • Nutmeg: Offers a socially responsible portfolio that excludes tobacco, weapons, and companies with poor environmental records.
  • Vanguard ESG funds: Low-cost index funds with ESG screening. Available globally.
  • Interactive Investor: Lets you build a custom portfolio and select individual ethical funds.

Does Ethical Investing Sacrifice Returns?

This is the most common question, and the answer is encouraging. Multiple studies have shown that ESG funds perform on par with — and in many cases outperform — traditional funds over the long term. Companies with strong environmental and social governance tend to be better managed, more innovative, and more resilient to regulatory changes. You do not have to sacrifice returns to invest with your conscience.

Getting Started

Start by reviewing where your existing pensions and savings are invested — many workplace pensions default to funds that include fossil fuels and animal agriculture. Ask your provider about ethical alternatives. If you are investing independently, look for funds with explicit animal welfare screening, not just general ESG labels. The VEGN ETF is the gold standard for vegan investors.

Your money has power. Where you invest it matters just as much as what you eat.

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