Socially Responsible Investing

Sustainable investing seeks to align investment decisions with the investor’s social and environmental values while still generating long-term returns. Earning a profit is typically one of the top priorities for investors, but with sustainable investing, profit isn’t the only goal. Creating an impact is equally if not more important.

A shareholder activist is an individual or organization who uses their ownership in a company to influence change. Shareholder activism has increased over time, partially as a result of the increased investor focus on ESG (environmental, social, and governance) issues.

Pax World Funds are mutual funds that emphasize the shift to a sustainable global economy in their investment approach. They present an investment option for the environmentally savvy investor.

Corporate governance is any set of rules, corporate charter, bylaws, or formal policies by which a company and its leadership are guided in operating. Corporate governance involves balancing the interests of a company’s shareholders with those of its stakeholders, the latter of which can include a company’s employees, board members, business partners, and members of the larger community.

At the core of sustainability is the idea that everything we need for our survival depends on our natural environment. Sustainable practices allow us to maintain conditions that provide for the support of both present and future generations. The ultimate goal of sustainability is to meet our needs now without jeopardizing the ability of future generations to meet their needs.

A green bond is a bond whose proceeds are used to fund projects that promote sustainability. Interest in new types of bonds is rising because people can help influence change through investing. First issued in 2008 by the World Bank, green bonds have caught on worldwide.

Strategic asset allocation is an investing strategy that helps you determine what percentage of your assets should be in stocks, bonds, and cash. It is a static allocation that trusts in the market over individual impulses.

An investment mandate is a set of instructions laying out how a pool of assets should be invested. The mandate sets out rules to guide choices during investing. These rules then inform the actions of an investment manager.

Environmental, Social, and Governance (ESG) exchange-traded funds are ETFs that focus on investing in businesses that follow good ESG practices. This includes things like taking steps to reduce their impacts on the environment, ensuring that they treat all of their employees and vendors fairly, and encouraging fair and equitable corporate governance.