Looking at these beautiful trees is truly a gift. We are blessed to have the abundance of natural resources to experience, use, view and enjoy. Many of our clients have expressed an interest in sustainable investing as a complement or alternative to their existing portfolio. What is sustainable investing?
What is sustainable and responsible investing?
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 and positive societal impact.
Just as there is no single approach to SRI, there is no single term to describe it. Depending on their emphasis, investors use such labels as: “community investing,” “ethical investing,” “green investing,” “impact investing,” “mission-related investing,” “responsible investing,” “socially responsible investing,” “sustainable investing” and “values-based investing,” among others.
Is sustainable investing more than a trend?
According to the US SIF Foundation’s 2018 Report on US Sustainable, Responsible and Impact Investing Trends, as of year-end 2017, more than one out of every four dollars under professional management in the United States—$12.0 trillion or more—was invested according to SRI strategies and the category continues to grow.
Why is sustainable investing important?
Part of the answer is the opportunity to make a difference in the outcomes of the issues that we as individuals believe are important to our overall wellbeing. At a macro level, asset management firms and institutional investors are addressing a diverse set of environmental, social and governance concerns across a broader span of assets than in 2016. Many of these money managers and institutions, concerned about racial and gender discrimination, gun violence and the federal government’s rollbacks of environmental protections, are using portfolio selection and shareowner engagement to address these important issues.
Meanwhile, a number of surveys show that individual investors, too, are interested in investing for positive impact. Mosaic Fi has heard from several clients interested in putting their dollars to work while also having a positive impact on the environment. We are responding to this interest by offering access to Dimensional Fund Advisors Core Sustainability Fund. Please let us know if you would like to learn more.
We would be happy to sit down with you to explain in greater detail how this fund attempts to affect change and how it would fit within your overall asset allocation. Feel free to contact Jenifer at Jenifer@MosaicFi.com.
Jenifer Aronson is the Founder of Mosaic Fi.