No one wants to sacrifice performance or price when choosing investments, yet aligning your values to the companies you invest in is important to you. There is a reason that sustainable investing, or Socially Responsible Investing (SRI), is gaining popularity. Through employing a SRI, or Environmental, Social & Governance (ESG) strategy, investors at all levels are able to pursue their goals while reflecting their values in their portfolio.
SRI is a process of examining the nature of the business a company conducts, the company’s values, and other aspects of a company such as what products it sells. Integrating ESG investing standards into a portfolio further examines a company’s operations by using a set of socially conscious criteria to screen investments. ESG portfolios are constructed by layering this evaluation of the long-term impact a business has on society, the environment and the performance of the business itself on-top of traditional investment analysis.
Investors commonly seek out firms that engage in social justice or environmental sustainability, such as companies in the alternative energy industry, or companies that support human or animal rights, equal employment opportunities and other justices. Another SRI option is to avoid investing in companies that partake in practices that contradict your values. SRI is as unique as your individual values and our job is to work with you to find intelligent investments that reflect your values and beliefs.
Shepherd Financial Partners understands your values lead your life, and therefore have a place in your investment strategy. If SRI or ESG investments are of interest, talk with your advisor about how we can implement both active and passive approaches into your portfolio. We can create investment portfolio strategies aligned with your goals that meet socially responsible criteria while still adhering to our firm’s global process for investment management and risk management.