What Is Sustainable Investing?
Sustainable investing is a financial strategy recognizing companies’ positive global impact. This can include investing in companies committed to fighting for social justice, battling climate change, or promoting fair working conditions. Thus, your portfolio reflects what’s most important to you. Examples of sustainable investments include:
These investments are focused on three specific factors — environmental, social, and governance. ESG investments are graded on the impact of each of those factors and could include commitments to:
Socially responsible investing is similar to ESG investing but also considers ethical guidelines. These considerations could be based on religious, political, or personal beliefs. SRI investments could avoid companies based on the following:
Impact investing is designed to tackle the issues most critical to the world today. While the goal is to help companies drive positive societal and environmental change, like ESG and SRI contributions, the decision-making factors behind choosing firms are generally broader.
How Are Sustainable Investments Found?
The first step is to outline what’s in line with your values. Sustainable investments are evaluated by independent, third-party companies and research groups and scored based on ESG principles. While the individual scores for environmental, social, and governance may vary for each company, mixing and matching sustainable, socially responsible, and ethical investing can help balance your contribution.
Find The Right Sustainable Investment Funds For You
Let a financial advisor locate investments you feel good about. Serving the Syracuse area and Central New York region, the financial professionals at HighPoint Advisors, LLC can develop solutions that balance your principles and financial goals. Contact us today for more information.
Creating An Intentional Portfolio
Your portfolio can positively change the world and your financial future. Studies have shown that the trends of meaningful investments are similar to traditional investments. What’s more, they often show several indications for lower market risks.
You can use various resources across the internet to learn more about sustainable and socially responsible investments. However, financial advisors who are well-versed in this type of investing can help narrow your search and find the options that align with your values and financial goals. Some of the investments you can make include:
After evaluating your financial priorities and investing preferences, a financial advisor can create a winning portfolio that promotes a brighter future for you and the causes you care about.