There is “wrong” and there is “different”.

An investment strategy is “wrong”, if it just gives lower returns or higher risk. For example, more diversification gives you equivalent returns for less risk, thus not diversifying is wrong.

An investment strategy is “different”, if it lowers financial returns in return for something else. For example, you want to intentionally lower risk or not invest in evil companies. There is nothing wrong about that. You can invest with your heart, just be aware of the lower returns.

Donations can be considered a “different” investment where the financial returns are zero. In return you “save the world” a little.