Why don't you start doing values-based investing?
Values-based investing encourages evaluation of non-financial risks and returns in our investment strategies. More than our thoughtful social media posts for social justice and environmental awareness and even our consumption habits, it is the capital we mobilize that sends the strongest message to the economy– for the future we want to build. Negative screening companies/funds that are not aligned to our ethics and values is an important step in addressing global challenges – whether that is divesting from fossil fuels to focus on renewables or avoiding industries that have poor human rights records. Using ESG metrics as an additional filter to seek out investments that are evaluating their impact on people, planet and profit can be both a risk mitigator as well as the opportunity to build a more sustainable and successful outcome.
Impact investing invites you to define which societal issues you prioritize and to invest your capital in contributing to solutions. Whether you are passionate about addressing inequality, access to healthcare, plastics in the water or CO2 emissions, there are available investments across asset classes that address these issues proactively and with measurable outputs – where each investor can choose the risk/ return profile and optimize financial and/or impact returns as they deem fit. It is not a zero-sum game on financial vs impact returns, but each investor can choose their own balance and objectives.
During a time where mindset is scarcity and toilet paper outranked oil in value, we are all being asked to evaluate our intentions to ‘build better’ and set new standards and expectations for our economy. Now is the time more than ever to align your values with your investments and support purpose-driven organizations fueling the new economy towards a more equitable and environmentally responsible future. Join us on the #impactimperative journey @tiimeNOW.
Testimonial from Hedda Pahlson-Moller following her participation to the summer LPEA webinars - find all the LPEA Guest's Gems here.
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