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.
An investment strategy that integrates Environmental, Social and Governance (“ESG”) and Social Responsible Investing ("SRI") factors aims to make investment decisions through the analysis of ESG/SRI factors alongside other financial variables in an effort to deliver superior, long-term, risk-adjusted returns. The degree to which ESG/SRI integration impacts a portfolio’s holdings may vary based on the portfolio manager’s materiality assessment. Therefore, ESG/SRI factors may limit the investment opportunities available, and the portfolio may perform differently than those that do not incorporate ESG/SRI factors. Portfolio managers have ultimate discretion in how ESG/SRI issues may impact a portfolio’s holdings, and depending on their analysis, investment decisions may not be affected by ESG/SRI factors.
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.
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 investment strategies that have been gaining popularity in recent years.
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.
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:
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Osaic FS, Inc. and its representatives do not offer tax or legal advice. Individuals should consult their tax or legal professionals regarding their specific circumstances.
See Osaic FS’s Form CRS Customer Relationship Summary, available here, for succinct information about the relationships and services Osaic FS offers to retail investors, related fees and costs, specified conflicts of interest, standards of conduct, and disciplinary history, among other things. Osaic FS’s Forms ADV, Part 2A, which describe Osaic FS’s investment advisory services, Regulation Best Interest Disclosure Document, which describes Osaic FS’s broker-dealer services, and other client disclosure documents can be found here.
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