Sustainable impact investing, also called ESG investing, has made great strides over the last few years. The 2020 Trends Report by the US Sustainable Investing Forum shows that investors are considering ESG investing factors – weighing the environmental, social and governance impacts of a company – over $17 trillion of professionally managed investments, a 42-percent increase since the start of 2018. Investors are recognizing that the ESG “lens” helps to identify responsible, well-managed companies that can be resilient over the long term.
Green River Sustainable Financial Services has been a local pioneer in this increasingly popular approach to low-carbon investing, seeing it as a way for investors to be ahead of the curve as the entire world transitions to a low-carbon future. Companies that are able to reduce their carbon footprint and pivot to climate-sensitive innovations are likely to benefit in the long term.
We build and manage portfolios of exchange traded funds and mutual funds for our clients, who benefit from the diversification, professional management and public track record provided by the fund managers.
We use data mining companies such as As You Sow and Morningstar to inform our decision-making process when selecting funds for the portfolios. These partner organizations analyze the funds and provide us with precise information about the ESG attributes of their holdings.
This allows us to know a great deal about each fund, including: its aggregate carbon footprint compared to those of its fund industry peers, what its exposure to fossil fuels is, whether holdings include weapons manufacturers or companies implicated in palm oil deforestation, and what the aggregate gender equity ratio is at the top manager level.
Morningstar’s data allows us to review the fund’s performance through good years and bad, going back 10, 15 even 20 years.
This combination of ESG data and long-term performance data is what we rely on when building portfolios for our clients.
A good way for people to learn about our process is to schedule a no-cost, 30-minute phone consultation. We also can review your current portfolio and make general recommendations, providing an independent “second opinion” on your current investment strategy. Feel free to visit our website, sign up for our quarterly newsletter or reach out to us by phone or email.
Green River Sustainable Financial Services
Patrick Costello, CFP, CLU
(415) 453-6000
[email protected], www.GreenRiverFinServ.com
Patrick Costello, registered representative, securities offered through Cambridge Investment Research Inc., a broker/dealer, member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors Inc., a registered investment adviser. Cambridge and Green River Financial Services are unaffiliated. Investing involves risk. Depending on the different types of investments, there may be varying degrees of risk. Socially responsible investing does not guarantee any amount of success.
