Investing Your Values
What Is Socially Responsible Investing (SRI)?
SRI, also known as environmental, social, and corporate governance (ESG) investing, starts with traditional research and portfolio management processes and adds an additional layer of analysis. This added layer involves using screens to determine which investments are to be included within an investment portfolio. The screens may be either exclusionary, to help investors avoid firms whose products conflict with their personal beliefs such as fossil fuels and weapons, or inclusionary, to emphasize firms that promote positive social issues such as renewable energy or environmental stewardship.
Adopting an SRI Framework
Effectively integrating ESG strategies into your portfolio will depend on your individual investment and personal goals, risk tolerance, and time horizon. If you determine that adopting an ESG investing approach is right for you, we recommend adhering to a simple three-step framework when getting started:
1: Define your long-term investing goals
After reviewing your investment objectives, we will work together to assess different ways ESG investing could fit into your overall financial plan, then discuss which specific approaches best suit your goals.
2: Narrow your focus
Looking beyond the discovery stage, we will work together to identify your investing priorities and design our ongoing process. This will allow us to assess the level of ESG integration that is right for you while evaluating an appropriate asset allocation that aligns with your goals, risk tolerance, and time horizon.
3: Revisit your approach
When working with long-term investors, it is vital that we continually review your desired outcomes and expectations alongside your financial returns. With ongoing dialogue, we can define success or modify your plan to address your changing preferences.