What Exactly is ESG

Straight-forward view on Environmental, Social, and Governance Criteria. This provides a short summary by Investopedia of what ESG is and how it works.

Examples of ESG criteria that are used by investors. This compelling visual by US|SIF, a leading sustainable investing advocacy and support organization, lays out some of the key criteria that are considered in ESG investing.

What About Financial Returns

Cornerstone Capital analyzed over 2,200 studies conducted since the 1970s and found this consistent conclusion:  ESG standards do not compromise investment performance.

Morgan Stanley looked at more than 10,000 mutual funds over a seven-year period. Their analysis showed that investing in sustainability not only met, but often exceeded, the performance of comparable traditional investments. This was true on both an absolute and a risk-adjusted basis. And it was true across all asset classes over the period studied. Follow-on research by Morgan Stanley in 2019 provided further support to these earlier studies. 

US|SIF provides links to key studies by Nuveen TIIA Investments, Barclays Research, Cambridge Associates and others. This one-page summary covers studies that range from 2007 to 2019 showing that ESG investing is as viable as traditional investing.

The US Impact Investing Alliance pulled together a comprehensive list of resources to demonstrate that sustainable investing leads to equal, if not greater, performance than traditional investing.

How Several Women are Attaining Financial Fulfillment

These four women moved their money into alignment with their values, then blogged about it. You might be inspired by their stories. Learn more about many of the investments they describe in the remaining chapters of Activate Your Money.

Samantha Penabad moved her cash into a community-oriented bank, chose a socially responsible fund in her company’s 401(k) plan, and used robo-advisors for her personal investments.

Laura Oldanie is part of the Financially Independent Retire Early (F.I.R.E) movement. On her website, Rich & Resilient Living, Laura explains how she is using crowdfunding to invest in private companies that are helping create the world she wants to see.

Erika Karp is both a Wall Street veteran and the founder of Cornerstone Capital, an impact investing financial advisory firm with over $1 billion in assets under management. She tells how she is putting her own money where her values are.

Beth Bafford has written several times about aligning her investments with her values. In this article, she describes an investment framework she uses. She also talks about investments she made with her cash, fixed income, and public equities, and in private investments and alternatives.

Sites to Know About

Sites and organizations that you can follow for ongoing information about values-aligned, green, and sustainable investing include:

GreenMoney: An e-Journal and website that covers sustainable business, impact investing, renewable energy, organic agriculture, and ethically-made products.

Just Capital. Starting by thought leaders like Deepak Chopra and Arianna Huffington, Just Capital is a non-profit organization that analyzes and engages with large corporations to determine how they perform on the public’s priorities. On the site, you can sign up for the Just Report, a weekly roundup of “news and insights into the future of capitalism, and the movement to build a more just and equitable marketplace in America today.”

SoCap Global: The premiere conference and platform for inspiring investments in positive impact.

The Conscious Investor. A weekly magazine that sheds light on the world of impact investing.

US|SIF: The US Forum for Sustainable and Responsible Investment provides a wealth of information and training about investing for positive change.