My colleague, Katie Villegas, wrote the following. Please enjoy.
– Rick Waechter
Sustainable, responsible and impact investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns, while also making a positive societal impact.
While this investment philosophy has a long history, the formalized industry of SRI investing is fairly new. As you can see from the graph above, the interest in this way of investing has been growing exponentially in recent years.
Old Peak Finance offers a comprehensive approach to sustainable investing.
Negative or exclusionary screens
We can help you understand what funds you currently hold. For example, we can determine what percentage of your holdings are in the fossil fuel or weapons industry. Our conversations together can help us determine if you want to divest of certain funds due to their holdings, or if you are satisfied knowing only a small percentage of what you own is associated with your filters.
Positive or impact screens
What industries or companies do you directly want to support because of their environmental, social, or governance values? We can direct your investments to make an impact in areas such as corporate gender equity, alternative energy products, or sustainable real estate.
By placing your cash in a community development financial institution, especially a local one, you are investing in your community and improving access to financial services to those who most need it. We can help you find an appropriate place to save where you are supporting a mission of creating and protecting ownership and economic opportunity for all.
You may be asking the following questions:
- Will I be compromising returns by investing with my values?
- Are there increased expenses, and is it worth it?
- How does this fit within the traditional approach of investing based on asset allocation and risk profile?
See our expanded white paper here that goes more in depth and seeks to answer these questions. And as always, the reality with investing is that it is risky, and outcomes are never certain.
As an investor, you may ask yourself “what impact do I want my investments to have?” And as advisors, we will continually ask “what impact will your investments likely have on your overall financial plan?” We want to ensure all these factors align to advance your goals.