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Scott Thomas, ChFC®, CAP®, CKA®, RICP®

Socially Responsible Investing: Two Main Approaches

Socially Responsible Investing: Two Main Approaches

1) Values/Impact Approach.  Investors while continuing to focus on financial returns over time also want to ensure that their investments will have a positive social and environmental impact.  Not just individual investors but may include foundations, family offices and religious institutions as well.

2) Performance/Risk Reduction Approach.  Investors consider ESG criteria in investment analysis and shareholder engagement primarily to manage risk and identify investments and companies that will provide superior financial performance over time. Many investment management firms fall into this group.

Environmental, Social and Governance (ESG) analysis can assist in uncovering both additional investment opportunities and hidden risk.  Investors evaluate the impact of their investments upon the economy and their environment. Currently one in four dollars in United States is invested through SRI Strategies.

SRI Questionnaire Link

Graphic Overview of Sustainable and Impact Investing

Study on Performance and Risk Reduction

 

Scott Thomas of Stewardship Matters, Inc. has completed The Center For Sustainable Investment Education conducted by US SIF Foundation.  You can reach Scott at 407-644-9411 extension 2 or scott@stewardshipmatters.net

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Check the background of this financial professional on FINRA's BrokerCheck