At Windward Financial Strategies, we can help you maximize your financial returns without compromising your personal values. We specialize in financial strategies that incorporate a client's individual values and principles.
You may have heard of SRI by one of its other names – it’s sometimes called sustainable investing, social investing or “green” investing.
Socially Responsible Investing (SRI) is a financial strategy that takes the clients’ ethical values into account when screening potential investments.
Depending on what matters to you, this can take many forms. It can mean investing in companies that are environmentally sustainable or are actively involved in the conservation of natural resources. Clients may choose to target companies that practice equitable hiring, prioritizing racial and gender diversity. Or we may look at making investments that will have a positive social impact in your local community.
Another term you may have heard before is Environmental, Social and Governance (ESG) Investing. ESG is similar to SRI investing, and many personalized financial strategies may incorporate elements of both.
In socially responsible investing (SRI), your advisor will help you to screen investments to exclude anything that doesn’t align with your values. For example, some clients wish to avoid investing in companies that produce alcohol, tobacco or weapons, or that produce fossil fuels. These exclusions are up to you – we’re here to help you make sound investment decisions based on your decision.
Environmental, Social and Governance (ESG) investing takes it a step further, looking at a set of established criteria that are widely recognized in the financial services industry. These include:
Examines a company’s environmental impacts, any environmental risks that may affect its profitability, and its use of renewable energy sources
Examines a company’s social impact, including its hiring practices, diversity of stakeholders, support of fair wages and fair trade practices, and charitable contributions
Examines the stability and transparency of governance within a given company, as well as its accountability to stakeholders and lack of political conflicts-of-interest
It’s possible to target causes that matter to you without sacrificing profits. SRI and ESG are time-tested investment strategies that have been gaining popularity in recent years. Studies have repeatedly shown that socially responsible investment funds are able to perform as well, or even out-perform, conventional investment funds.
While Environmental, Social and Governance (ESG) criteria may seem to be focused on ethics rather than financial returns, conforming to ESG standards often has a positive impact on a company’s profitability.
As public interest in environmental sustainability grows, for example, “green” businesses tend to grow and thrive. A company that practices transparent accounting may avoid controversies that can stifle productivity. Upholding high ESG standards often means a company will have long-term resilience and growth.
When you meet with a financial advisor to discuss a Socially Responsible Investing strategy, we’ll develop a custom plan for you that looks at your goals and values:
J Chris Andrews is a Registered Representative offering securities and advisory services through Lincoln Financial Securities Corp., Member SIPC. Securities offered to residents of AK, AR, CA, NV, OR, RI, WA & WI. Advisory services offered to residents of AK. Lincoln Financial Securities and Windward Financial Strategies are not affiliated. Lincoln Financial Securities and its representatives do not offer tax or legal advice. Individuals should consult their tax or legal professional regarding their specific circumstances. LFS-4233419-012622.
See Lincoln Financial Securities (LFS’) Form CRS Customer Relationship Summary, available here, for succinct information about the relationships and services LFS offers to retail investors, related fees and costs, specified conflicts of interest, standards of conduct, and disciplinary history, among other things. LFS’ Forms ADV, Part 2A, which describe LFS’ investment advisory services, Regulation Best Interest Disclosure Document, which describes LFS’ broker-dealer services, and other client disclosure documents can be found here.
