On April 22nd, the world will celebrate the 51st Earth Day. This year’s theme is Restore Our Earth. It represents a chance to learn about the environmental challenges we face today, ways to become more involved, and ways to align one’s personal choices in order to make a positive impact.
More than ever, people care about how and where their money is invested. Sustainable investing is an investment strategy that puts funds where they can make a positive change – be it socially, environmentally, or in support of positive corporate governance. Sustainable investing has positively changed the investment industry by challenging and then adapting traditional approaches of the investment decision-making process.
A force for a change
At Arrow & Bow, we are proud to partner with LPL Financial and embrace sustainable investing as a vehicle for creating more value for our advisors and their clients. We believe it is our responsibility to incorporate an assessment of material environmental and social issues, as well as the quality of governance practices, into our investment research and analysis. We have specialists in our Research Department driving our sustainable investing approach by:
- Focusing on identifying prudent sustainability practices
- Implementing sustainable investment strategies
- Developing a sustainable investment practice at LPL that leads toward a broader impact on stakeholders like suppliers, customers, employees, communities and stockholders
Defining sustainable investing
We define sustainable investing as, “an approach that incorporates environmental, social, and governance (ESG) issues when building an investment portfolio, while encouraging companies to improve their ESG risk-management practices.” In practice, sustainable investing takes a broader approach to evaluating risk and does so over a long-term horizon by evaluating a company’s ESG risks, in addition to traditional financial risks.