What's green investing?

More investors than ever before are working to honor their life values with their investments. According to the US SIF’s latest trend report, $8.4 trillion in US-held assets incorporates sustainable investing assets (including environmental) into deciding what companies to invest in.

For those who value environmental care highly, there are three main tools to incorporate:

1. Screening – or divesting from – things that don’t support your values. There are a growing number of funds without any fossil fuel exposure in them. This is the easiest way to implement values-based investing. Choose what you want to avoid, and search for funds that do the same. Find out more about the Everence Green Priority portfolio to see if this screened portfolio is a good fit for you.
2. Shareholder advocacy – or “arguing with companies using our rights as shareholders.” In the case of environmental care, a revenue-based argument might be used to encourage companies towards more sustainable practices. For example: if climate change poses a future business risk, a company can position themselves for success (and beating their competitors) by adopting climate-friendly practices early.
3. Impact investing. Maybe a large oil company wants to start their first wind-power project and investors want to encourage them to move away from fossil fuel use. Mutual fund companies willing to devote the staff time to this practice can issue bonds to create win-win projects that create a return for the fund while moving the world towards environmental sustainability.

Many investors appreciate the ability to align their investments with their values. In a world where retirement savings are necessary, they decide to layer impact into their investments. Investments can keep working for your vision of the world even while you go about your everyday life.