Building wealth doesn’t have to mean leaving your values at the door. From conscious capitalism to impact investing, you’ve got a lot of options for supporting your values through your investment strategies.
Broadly speaking, these options are part of a larger movement called “sustainable investing,” designed to help you invest in ways that support your ethics and values. Sustainable investing has become increasingly popular as more people look for ways to incorporate their beliefs into their wealth strategies. In 2019, $13.5 billion moved into sustainable funds—nearly three times the fund flows in 2018.1
One reason it’s become so popular is that more people are recognizing that the companies solving the world’s biggest challenges may be in the best positions to thrive. Often, that’s because these companies are pioneering better ways of doing business.2
Beyond that, sustainable investing can also offer a greater sense of purpose. It can bring deep, personal fulfillment that may be just as valuable as financial returns.
Learn more about four approaches investors are using to align their financial choices with their beliefs through sustainable investing.
4 Ways to Integrate Your Values in Your Investing:
#1 Socially Responsible Investing (SRI)
SRI takes a values-based approach. That means your values guide your investment choices. So, SRI usually involves investing in companies that align with your social, political, and/or religious values. It can also involve screening out companies or industries doing things you stand against.
#2 Environmental, Social & Governance Investing (ESG)
ESG investing involves supporting companies that are working to improve the environment or community. You are often looking to support companies working to improve their local communities or that have corporate cultures that support your values.
#3 Thematic Investing
With thematic investing, your choices and investments are driven by one or more themes derived from your beliefs or ideas about what represents progress. These themes could include anything from green energy and cybersecurity to artificial intelligence, cures for diseases, religion, or more.
#4 Impact Investing
Impact investing is about investing in positive change to try to solve the world’s big problems. That can mean investing in companies that fight world hunger, combat human rights abuses, or are otherwise striving to improve the planet and the human condition. These companies may be working to make positive change, or they may have a corporate culture that supports it.
“Sustainable investing is a way to fight the big problems, make real impacts,
and support lasting changes that can shape the future.”
Your Investment Strategy Can Help Make the World a Better Place
Sustainable investing is about more than just putting your money where your mind is. It offers a way to champion and advance the causes that are most important to you. And it can empower you to fight the big problems, make real impacts, and support lasting changes that can shape the future.
Most importantly, when you integrate your values and your investment choices, you don’t have to compromise on growth. That’s because sustainable investing can be rewarding personally, globally, and financially.
There are a number of strategies available that can help you invest in the companies and industries that share your values and support your beliefs—and avoid businesses that don’t. If you are passionate about certain causes, we can help you create an investment portfolio that reflects those passions. That way as your money grows and you secure your financial future, you are helping build the future you want to see.
If you want to learn more about how sustainable investing might work for you, we have the experience and tools to help.
In service of your goals and values,
Jodi & Mike
Sources & Disclosures
1 – https://www.morningstar.com/articles/952254/sustainable-investing-interest-translating-into-actual-investments
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