Socially Responsible Investing (SRI) is literally changing the investment management industry. It goes well beyond a product or service; it is imbedded in our professional behaviors.
Institutional Investors are paying more attention to Environmental, Social and Governance (ESG) factors to analyze the conduct of the companies in which they place capital. As ESG accelerates in demand, several key trends have emerged. From climate change to social unrest, the pressure continues on financial systems to move towards more integrated sustainable investing frameworks. Interestingly and important to note. It is not a new trend. It’s been part of the conversation for a while now, and it is an accepted fact that investment returns do not need to be sacrificed for environmental or social benefit. While COIVD 19 may well be a turning point for ESG Investing, as society alters its values, regardless of the length or outcome of the current challenges, the ESG conversation is here to stay. And that’s a good thing!
We don't have to sacrifice a strong economy for a healthy environment.Dennis Weaver
The future depends on what we do in the present.Mahatma Gandhi
Impact investing goes beyond excluding companies that may have questionable business practices. Instead, it seeks out companies with a stated intention to generate positive, measurable social and environmental impact alongside a financial return. It's a trend that is on track to play a much larger role in the years ahead.Terry Cain, Globe & Mail, 2019
There is no “one size fits all” approach when it comes to responsible investing.
The most prominent strategies include positive/negative screening, ESG integration, thematic ESG investing, shareholder engagement, and impact investing. Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. It’s like philanthropy meets investing. A common misconception is that one must give up potential returns in order to invest responsibly. This is just not the case. It is important to know that you have choice, and lots of it, when it comes to RI. At Nesbitt Financial Strategies, both Krysta and Jonathan are Responsible Investment Specialists (RIS), which means we have the knowledge, education and passion to support you in building your portfolio to include investments that are creating positive change in our world.