Align your values with specialized investment and philanthropic vehicles.
2 min read
You do not have to be a mega-celebrity to effect change on a broader scale. Specialized strategies, many firmly rooted in what's known as sustainable investing, can elevate any portfolio. Ultimately, investing and philanthropy are calculated exercises of hope that tomorrow will be brighter than today. Sustainable investing takes that idea even further, using vehicles designed to purposefully and intentionally make a positive impact on the world.
Often referred to as ESG investing for the criteria on which companies are evaluated– enviromental, social and governance- sustainable investing considers that progress toward solving global challenges such as climate change, social inequality and unethical business practices can be made by investing in companies and enterprises that promote sustainability. It's a consicous approach to align your personal values with your portfolio. In short, it's putting your money where your mouth is.
A Spectrum of Strategies
Each sustainable inveswting approach aligns with different motivators an dcomes with its own set of options on how to implement it in your portfolio. Every sustainable investing approach is motivated differently, allowing its own set of ways to implement the approach.
The exlcusionary approach, for example, helps you avoid investments that don't align with your values or standards. Options include funds and ETFs available that seek to adhere to religious values, or avoid tobaco producers and weapons manufactorers, or classify their holdings as "fossil fuel free".
Other approaches to sustainable investing focus on achieving a net-positive global impact alongside a financial return.
To achieve change, many foundations and family offices are establishing funds that support local economic development and social impacft missions across the globe, like a 2016 impact investment in Civic Builders that built a new school to serve a city in financial ruin with a 29% poverty rate. Or an investment in funds that build affordable housing for people with diabilities. Impact investing ranges from grant support to private equity, with liquidity risk and return potential varying dramatically.