This Earth Day Learn How to Invest Sustainably

The 3 Rs aren't just a great way to save the planet—they're also a great way to save and build your finances. Sustainable investing balances traditional investing with environmental, social, and governance-related (ESG) insights to improve long-term outcomes.

Today is Earth Day and it’s the perfect time to dive into  sustainable investing (aka Values Based Investing)!

Values based investing is when you invest your hard-earned money in companies that not only deliver solid financial returns, but also make a real difference in the world. These are investments where your money aligns with your values and contribute to a brighter future for everyone.

So, What Exactly is Sustainable Investing?

Sustainable investing, also known as ESG (environmental, social, and governance) investing, is all about aligning your investment choices with your values. It's about backing companies that prioritize people and the planet alongside profits.

Let's delve deeper into the 3 ESG factors:

• Environmental Excellence:

  Imagine investing in companies that are leading the charge towards a greener, cleaner future. From renewable energy pioneers like Tesla to sustainable agriculture innovators like Beyond Meat, the opportunities are endless. By supporting these trailblazers, you're not just investing in profits; you're investing in the preservation of our precious planet.

• Social Champions:

  Now, picture investing in companies that champion social justice and equality. Think of Patagonia, a company known for its commitment to fair labor practices and environmental activism. Or consider companies like Microsoft, which prioritizes diversity and inclusion in its workforce. By investing in such companies, you're not only promoting positive social change but also contributing to a more inclusive economy.

• Governance Guardians:

  Good governance is the backbone of sustainable investing. Companies with strong leadership, transparency, and ethical standards are more likely to weather storms and thrive in the long run. Take a company like Unilever, which has set ambitious sustainability goals and holds itself accountable to them. By investing in companies with robust governance practices, you're safeguarding your investments and promoting corporate integrity.

How to Start Investing Sustainably

Now that you know what sustainable investing is, here is how you can start investing in sustainable companies today:

1.     Do Your Homework: Start by researching sustainable investment options. Look for mutual funds, ETFs (exchange-traded funds), or robo-advisors that specialize in ESG investing. Websites like Morningstar offer ESG ratings for companies, making it easier to identify sustainable investment opportunities. You can also talk to your financial planner/bank to secure more information on investment options that are aligned with your values.

2.     Set Your Priorities: Determine which ESG factors are most important to you. Whether it's environmental stewardship, social justice, or corporate governance, clarify your values and investment goals. This will guide your investment decisions and ensure alignment with your principles.

3.     Invest in What You Believe In: Once you've identified sustainable investment options, start allocating your funds accordingly. Consider diversifying your portfolio across different sectors and asset classes to minimize risk. Remember, every dollar you invest is a vote for the kind of world you want to live in.

4.     Engage with Companies: As a shareholder, you have a voice in corporate decision-making. Consider engaging with companies through shareholder activism or proxy voting to advocate for positive change. Whether it's pushing for greater diversity on corporate boards or urging companies to reduce their carbon footprint, your actions can make a difference.

Don’t forget, to put this into action, visit your bank or reach out to your financial advisor to get more information.

The Ripple Effect: Benefits of Sustainable Investing

By now, you might be wondering, "Ok this is good, but how can sustainable investing make an impact on my finances?" ThereWell, let's take a look at some of the benefits of sustainable investing:

• Financial Returns: Contrary to popular belief, sustainable investing can deliver competitive financial returns. Studies have shown that companies with strong ESG credentials often outperform their peers over the long term. So, investing sustainably doesn't mean sacrificing returns; it means investing in companies poised for success in a changing world.

• Positive Impact: Perhaps the most rewarding aspect of sustainable investing is its potential to create positive change. Whether it's combating climate change, advancing social justice, or promoting ethical business practices, your investments can make a meaningful difference in the world.

The Bottom Line

Investing sustainably doesn't mean sacrificing returns; it means investing in companies poised for success in a changing world. So, this Earth Day, why not join the ride and become a champion for change? Sustainable investing can leave a legacy of hope, positivity, and sustainability for years to come. Remember: The 3 Rs aren't just a great way to save the planet—they're also a great way to save and build your finances.