Good News: It’s Easier Than Ever to Invest Based On Your Values

ESG Portfolios are Performing Well Enabling Fossil Free Investing

If you missed Sustainable Wellesley’s Banking on Our Values event you can watch it here and read on for expert insights on ways to build portfolios that align with your personal values and/or your organization’s mission.

How do I get started? 
Consider an Environmental, Social and Governance (ESG) investment strategy. ESG refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria are a gauge for determining the future financial performance of companies. 

As the financial industry embraces sustainable investing, there are hundreds of ESG index and mutual funds to choose from, including those with lower fee ratios. Finding good ESG scores is easier than ever by looking on Morningstar, Bloomberg and a corporation’s website. Most investment management firms also offer tailored guidance for institutional investors and private wealth clients. 

It is possible to replicate any sort of investment model with ESG flavors, at every asset point, risk level and investment amount. In fact, ESG’s did better over the last year during COVID-19 due to awareness around climate and social factors. 

Become an educated investment consumer

Do your own research or ask if  you are invested in fossil fuels via your savings or a portion of your paycheck.

What is your next step? 

• Build your ESG vocabulary, educate yourself and define why you are taking this action.
• Tell your advisor your priorities without giving up long-term returns.
• Pursue an ESG investment strategy as part of your retirement plan as well (mutual and index funds).
• Don't let your bank, credit card company, financial institution ignore this topic anymore. Call, write and let them know your values and that you are watching.
• Make sure to vote your stock proxy. It's a powerful tool in your toolbox.

We are grateful to our panelists Sumeit Aggarwal, Co-Founder and Managing Partner of Finhive,  Glenn Migliozzi, Lecturer in the Finance Division at Babson College, and  Heidi Vanni, Chief Client Officer at Boston Trust Walden, for their time and insights. This event would not have been possible without the impressive student event organizers Jacob Landau (WHS) and Jacob Nichols (Babson). 

Let’s keep this discussion going.