Sustainable investing, often called socially responsible investing, means investing in ways to encourage positive and lasting change in the world. Investments are generally evaluated in terms of their environmental, social and governance (ESG) implications.
These 3 categories typically cover the following factors, and more:
- Environmental: climate change, pollution, clean tech, circular economy, natural capital
- Social: human rights, diversity and inclusion, human capital management, health and safety
- Governance: corporate board issues, minority shareholder rights, corruption, tax compliance
So-called ESG incorporation includes five common sub-strategies :
- Positive/best-in-class screening : investing in sectors, companies or projects selected for positive ESG performance relative to their industry peers
- Negative/exclusionary screening : excluding certain sectors or companies involved in activities considered unacceptable or controversial (such as alcohol, animal mistreatment, defense/weapons, gambling, tobacco, etc.)
- ESG integration : regularly including ESG factors in investment decision-making
- Sustainability themed investing : selecting investment vehicles that focus on ESG-related themes, such as water and sanitation, sustainable agriculture, electric mobility, etc.
- Impact investing : investments aimed at solving targeted social or environmental problems.
So-called ESG incorporation includes five common sub-strategies :
- Positive/best-in-class screening : investing in sectors, companies or projects selected for positive ESG performance relative to their industry peers
- Negative/exclusionary screening : excluding certain sectors or companies involved in activities considered unacceptable or controversial (such as alcohol, animal mistreatment, defense/weapons, gambling, tobacco, etc.)
- ESG integration : regularly including ESG factors in investment decision-making
- Sustainability themed investing : selecting investment vehicles that focus on ESG-related themes, such as water and sanitation, sustainable agriculture, electric mobility, etc.
- Impact investing : investments aimed at solving targeted social or environmental problems.
At Silvergreen, we select mutual funds that can meet the client's financial objectives and at the same time be a positive force for the world. Our methodology is supported by Marcio's advanced professional credentials including the Certified Financial Planner (CFP) , and Chartered Financial Analyst (CFA) designations.
In addition, Marcio has earned the in-depth CFA Institute Certificate in ESG Investing . The certificate and learning materials have been recognized by the UN Principles for Responsible Investment (PRI), an independent body that encourages investors to use responsible investment to enhance returns and better manage business risks.
He is well-regarded in the financial advising field for his original and comprehensive approach to mutual fund due diligence along with his engagement directly with mutual fund families and ESG rating companies.
Marcio has been quoted on CNBC.com here and here as a subject matter expert in sustainable investing.
At Silvergreen, we select mutual funds that can meet the client's financial objectives and at the same time be a positive force for the world. Our methodology is supported by Marcio's advanced professional credentials including the Certified Financial Planner (CFP) , and Chartered Financial Analyst (CFA) designations.
In addition, Marcio has earned the in-depth CFA Institute Certificate in ESG Investing . The certificate and learning materials have been recognized by the UN Principles for Responsible Investment (PRI), an independent body that encourages investors to use responsible investment to enhance returns and better manage business risks.
He is well-regarded in the financial advising field for his original and comprehensive approach to mutual fund due diligence along with his engagement directly with mutual fund families and ESG rating companies.
Marcio has been quoted on CNBC.com here and here as a subject matter expert in sustainable investing.
Shareholder activism can take the forms of so-called “investor engagement” and/or “shareholder resolutions.”
- Engagement refers to shareholders communicating with public companies through methods such as voting proxies, talking with management or joining shareholder coalitions.
- When corporations do not respond, shareholders may turn to introducing resolutions at annual meetings. According to CNBC.com, “ESG-related shareholder resolutions have focused on issues such as corporate political activity, climate change, labor and equal employment opportunity, executive pay and human rights….”
At Silvergreen, we choose ESG-committed mutual fund companies who proactively encourage positive change via shareholder activism.
“It's the concept of active ownership – you care about what you own,” Marcio says. “This is the opposite of general index investing which is not capable of meaningful engagement because it includes all companies, good or bad.”
Shareholder activism can take the forms of so-called “investor engagement” and/or “shareholder resolutions.”
- Engagement refers to shareholders communicating with public companies through methods such as voting proxies, talking with management or joining shareholder coalitions.
- When corporations do not respond, shareholders may turn to introducing resolutions at annual meetings. According to CNBC.com, “ESG-related shareholder resolutions have focused on issues such as corporate political activity, climate change, labor and equal employment opportunity, executive pay and human rights….”
At Silvergreen, we choose ESG-committed mutual fund companies who proactively encourage positive change via shareholder activism.
“It's the concept of active ownership – you care about what you own,” Marcio says. “This is the opposite of general index investing which is not capable of meaningful engagement because it includes all companies, good or bad.”
For Silvergreen:
We want to work with like-minded people who share similar values and want to make the world a better place. Sustainable investing uses capital as a catalyst for global progress.
For clients:
- Financial benefits – The ESG focus improves the quality of risk management as well as the potential for long-term returns. For example, we are able to uncover opportunities to navigate physical, social and transition risks.
- Ethical reasons – We enable you to invest with your values and support causes and goals that are important to you.
For the world:
- We participate in investments that are robust enough to meet global challenges.
- When you provide capital to good corporate actors, you are contributing to better outcomes in the world.
For Silvergreen:
We want to work with like-minded people who share similar values and want to make the world a better place. Sustainable investing uses capital as a catalyst for global progress.
For clients:
- Financial benefits – The ESG focus improves the quality of risk management as well as the potential for long-term returns. For example, we are able to uncover opportunities to navigate physical, social and transition risks.
- Ethical reasons – We enable you to invest with your values and support causes and goals that are important to you.
For the world:
- We participate in investments that are robust enough to meet global challenges.
- When you provide capital to good corporate actors, you are contributing to better outcomes in the world.
