Financial Advisor and Partner for Values and ESG (Environmental, Social and Governance Investors)

I can help explain and educate.

I can help. I understand you. Although ‘Socially Responsible Investing’ has been around for decades, it is increasingly working its way into mainstream press, bringing more awareness to this type of investing.

For background, decades ago, what we called ‘Socially Responsible Investing’ meant screening out of your portfolio those companies who were involved in bad things, sometimes referred to as ‘sin stocks.’ Most typically, this meant avoiding investments in companies who profited from tobacco, arms, or gambling.

More recently, the industry has turned its attention to a more proactive form of investing responsibly, termed ESG, or Environmental, Social, and Governance investing. This type of investing actively seeks companies that are stewards of the tenets behind each letter. 

E = Environmental.

These companies typically aim to create business in an environmentally friendly way. They will focus on reducing their carbon footprint, addressing water scarcity, and mitigating pollution and waste. 

S = Social.

This addresses the workplace and supply chain. Are working conditions safe? Do employees feel respected? Is there a commitment to ensuring workers have appropriate work environments? Does the company play a positive role in the communities they are present in? 

G = Governance.

Are the leaders and Board members comprised of diverse backgrounds – men and women, LGBTQIA+, different cultures and beliefs? Unfortunately, when we really dive into the upper echelons of public companies, you’ll find many who have very homogenous leadership. There are many studies that point to diversity in the workforce leading to better management decisions, and better-run companies all around. 

Many companies are also trying to respect the United Nations’ Sustainable Investment Goals 

The United Nations developed these goals, with a target date of achieving progress of 2030. That is so soon! I won’t list all of them (there are 17) here – but here are some of my favorite examples:

1.     No poverty. More than 700 million people worldwide still live in poverty. Commit to donating what you don’t use, and support those in need.

5.     Gender equality. We have made strides in the US supporting this, but there is still MUCH progress to be made. And our recent crises has unfortunately, pushed much of the progress backwards, as more women are sacrificing careers to care for loved ones.

13.  Climate action. Global CO2 emissions have increased 50% since 1990. What can WE do to play our part in helping Mother Earth stay healthy for us and our future generations?

14.  Life below water. Billions of people worldwide rely on our waterways for their livelihood. We should carefully maintain our usage, and stop using plastic bags which often end up polluting our water.I do encourage you to learn more here: https://www.un.org/sustainabledevelopment/sustainable-development-goals/ - and not only do your part to respect and abide by these guidelines, but to also think about the companies that you purchase from, and invest in, and try to understand their roles in achieving these important goals. 

Next we move beyond SRI, and ESG, to Impact Investing.

Impact investing seeks to not only achieve investment returns, but to also understand the actual impact your dollars are having in a particular area. One example of this type of investing is called Community Development Financial Institution. They are typically found in your backyard, and support local projects such as affordable housing and economic development in communities. You can find many more examples of Impact Investing if you just look! 

Beyond investing, do you have charitable intentions?

This is an area where some clients have a firm grip on what is important for them to support with charitable donations of time or money. Other clients may not know where to start. We talk about what is important to you and your family. We work together to fit your goals into your overall financial plan. And finally, we determine together the appropriate vehicle for your situation. One popular example of a gifting vehicle, which can also positively impact client’s tax situation in a given year, is called a Donor Advised Fund (DAF). This vehicle offers tax deductions during the year you contribute funds, but then affords you more time to determine which public charities you would like to direct the funds to. They have seen a rise in popularity over the last several years. And lastly, depending on which provider we use, we also have the possibility to invest responsibly within the DAF. 

Finally, I partner with my clients to understand your values.

Some of my clients have never heard of these terms, while others come seeking out investing guidance in these areas. It is important for me, YOUR ADVISOR, to understand your values, and help create an investment program that not only fits into your overall financial plan, but also respects your values, and what is important to you.