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Ethical investing involves investing in companies or funds that align with an individual's ethical or social values, as well as their financial goals. This approach to investing is often referred to as socially responsible investing (SRI) or sustainable investing. Ethical investing may provide opportunities for tax-efficient investing, such as through the use of tax-advantaged accounts like ISAs or pensions. Companies may be able to claim tax deductions for certain expenses related to socially responsible investments, such as research and development costs or energy-efficient improvements. Additionally, companies that prioritize environmental sustainability or social responsibility may be able to take advantage of tax incentives or subsidies related to these activities. For example, a company that invests in renewable energy sources may be eligible for tax credits or deductions related to these investments.