Sustainable Investing

green forest
 

 

What is Socially Responsible Investing?

Sometimes referred to as environmental, social, and corporate governance (ESG) investing, socially responsible investing (SRI) is a broad-based strategy in which corporate responsibility and societal concerns are factored into investment decisions. In short, an SRI strategy seeks to maximize both financial return and social good. 

How Can I Invest?

If you are interested in seeking to prioritize investing in companies that embrace ESG standards or advocate for issues such as climate change, we offer the below investment solutions so you can put you money where your mind is:    

  • Stock portfolio: This strategy employs an ESG investment mandate to identify leading corporations with proven track records of integrating ESG factors throughout their organization. Such factors may include meeting a set of standards or aligning a company’s operations and strategy with principles related to environmental responsibility, social concerns, or corporate governance.
  • Fund portfolio: Ranging from conservative to aggressive allocation options, this investment solution utilizes mutual funds to create a diversified portfolio.        

Industry Trends

Sustainable investing was onced viewed as a niche offering for a small group of investors. It was also considered expensive while performance was perceived to be an afterthought. There are now a number of high quality investment solutions providing access to sustainable investing that target ESG risks and opportunities which are often missed by traditional financial analysis.

According to the linked BlackRock article below, "last year marked an inflection point for the adoption of global sustainable ETFs and index funds. Flows tripled in 2019 to a record $55 billion, raising global assets in sustainable ETFs and index funds to $220 billion. Inflows have persisted into sustainable index ETFs in early 2020 in the face of pandemic-related market turmoil, underscoring persistent and growing investor demand for sustainable strategies."

Many believe the recent growth in sustainable investing is only getting started. 

www.ishares.com/us/literature/whitepaper/reshaping-sustainable-investing-en-us.pdf

Socially responsible investing involves the exclusion of certain securities for nonfinancial reasons. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.  There is no guarantee that any investing goal will be met.