How Conscientious Employers Can Offer Responsible Investment Options In Retirement Plans
Did you know that responsible investing can be a great tool for recruiting and retaining top talent for nonprofit organizations?
Let me explain, starting with the definition of responsible investing. Responsible Investing is the investment process that integrates the pure financial dimensions of return and risk with environmental, social and governance factors (ESG factors) https://www.investopedia.com/terms/s/sri.asp.
Responsible Investing Means Your Investments Are Working Towards the World You Want to Live In
We are bringing a thoughtful conversation to the public about responsibly investing. What does it means to invest with your values AND your financial goals in mind?
Are Your Investments Funding the Very Problems You Are Working to Solve?
What would you think if your investment portfolio included several pharmaceutical companies that engage in price gouging and very questionable marketing practices? And you work at a nonprofit organization dedicated to equitable access to healthcare, which is a primary value for you.
Our Marcio Silveira is quoted in two recent articles 0n investing in ESG companies.
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“You’re providing capital to the industries of the future,” Silveira said. “They benefit more from the up side than the downside because of consumer demand.
“Laws and regulations may create incentives for these types of businesses, for example through tax breaks on green building and renewable energy,” he added. “Climate change will drive the demand.”
IMPACT INVESTING Here’s how companies factor in environmental, social and corporate governance concerns
For his part, Silveira sees a macro benefit accruing from integrating ESG factors into the analytical process.
“Why we’re excited about ESG is that, as the market comes to integrate and understand the mechanics of these types of risk, it will lead to increased valuations and prices for the companies with the lowest ESG risk,” he said.
“The world could ultimately be rewarding companies for better behavior and better stewardship of these important risks,” Silveira said. “And ultimately, higher valuations will result in a lower cost of capital.”