withsijoitus

Withsijoitus is a Finnish term that translates to "withholding investment" or "investment withholding." It refers to a practice where an investor or financial institution intentionally refrains from investing in specific companies, industries, or countries. This decision is typically based on ethical, social, environmental, or political concerns rather than purely financial ones.

The motivations behind withsijoitus can vary widely. Some investors might avoid companies involved in controversial sectors such as the tobacco, alcohol, or weapons industries. Others may choose to divest from businesses that have poor environmental records, such as those contributing significantly to pollution or climate change. Social factors can also play a role, leading to the exclusion of companies with exploitative labor practices or those that engage in human rights violations. Political considerations might also influence withsijoitus, with investors opting out of countries or regions deemed unstable or those with governance issues.

Withsijoitus is a form of socially responsible investing (SRI) and ethical investing. It aims to align investment portfolios with an investor's values and to exert pressure on companies to improve their practices. While it can lead to a smaller investment universe, proponents argue that it can also mitigate risks associated with companies facing reputational damage or regulatory scrutiny due to their activities. The effectiveness of withsijoitus as a tool for driving change is a subject of ongoing debate.