Opinion | Harry and Meghan want to invest ethically. That's harder than it looks.

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Harry and Meghan's stated purpose is to encourage younger people to invest “sustainably” — a worthy goal. Yet ethical investing is too often a smokescreen, Lenore Palladino writes for NBCNewsTHINK.

At the same time, U.S. households who own financial assets — such as stocks and bonds that they hold in a retirement fund or a 529 college account — have largely become fully diversified shareholders of corporate equity, meaning that their wealth is bound up in the entire stock market, not just a small subset of companies. This means we bear all the effects of corporate “negative externalities” — an economic term that refers to when a company finds a way to avoid paying for problems it created.

One might think that “sustainable investing” would solve this problem, and indeed there’s trillions flowing into “sustainable” portfolios. One might think that “sustainable investing” would solve this problem, and indeed there’s trillions flowing into “sustainable” portfolios, perhaps on that assumption. But as the

 

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