Earth Day 2021: Aligning with Sustainable Investing

Earth Day 2021: Aligning with Sustainable Investing

April 22, 2021

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.

Arrow & Bow is able to offer a variety of sustainable investing choices, ranging from exchange-traded funds (ETF), mutual funds, separate account managers, and centrally managed turnkey portfolios. Contact your Arrow & Bow Wealth Advisor to learn more about building wealth in ways that support your ESG principles.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

An Environmental, Social and Governance (ESG) fund’s policy could cause it to perform differently compared to funds that do not have such a policy. The application of social and environmental standards may affect a fund’s exposure to certain issuers, industries, sectors, and factors that may impact relative financial performance — positively or negatively — depending on whether such investments are in or out of favor.