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The Evolution of SRI: Why Sustainable, Resilient & Innovation Investing is the Future

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In the latest episode of Dollars & Change: The Expert’s Guide to Sustainable & Responsible Investing, host duties were reversed as Terra McBride, Chief Marketing Officer at Prime Capital Financial (PCF), the parent company of Earth Equity Advisors, interviewed Peter Krull during PCF’s Prime Week. Their discussion centered around the evolution of socially responsible investing (SRI) and why Peter believes the future lies in sustainable, resilient, and innovative investing.

The conversation begins with Peter reflecting on his two decades in the industry. He touches on the origins of SRI, which date back to faith-based exclusions as far as the 18th century. Over the years, the movement gained momentum through major events, including the anti-apartheid divestment campaign—a movement in the United States aimed at ending apartheid in South Africa—and the rise of environmentalism in the 1970s.

Traditionally, SRI has focused on three pillars: screening companies in or out based on values, shareholder advocacy, and community investing.

Peter then dives into ESG, which allows advisors to measure and quantify environmental, social, and governance risks. However, he notes that ESG is often misunderstood—it’s not about a company’s impact on the world, but about how external factors impact the company and its performance.

From Climate Change to Changed Climate

Throughout the episode, Peter emphasized that we are currently living in a “changed climate,” and climate change is no longer a problem for the future. With natural disasters such as hurricanes, fires, and flooding impacting communities and businesses, this shift requires urgent action, not future promises.

Peter and the rest of his team at Earth Equity experienced firsthand when Hurricane Helene hit Asheville in September of 2024. The need for resilience and adaptation was prevalent, a critical element often overlooked by traditional sustainable investing. Asheville experienced water shortages and failing infrastructure, emphasizing the need to prepare for what’s next, rather than just responding to the last disaster.

The Next Iteration: Sustainable, Resilient & Innovation Investing

Peter believes the future of investing is sustainable, resilient, and focused on innovation. Sustainability remains foundational, but resilience—investments in infrastructure, energy transmission, and systems that withstand extreme weather—must take center stage. Innovation ties it all together. From advanced technology to new energy systems, innovation enables progress in both sustainability and resilience.

In the distant future, Peter imagines a world where sustainable investing is simply “investing.” He believes that integrating his new definition of SRI — sustainable, resilient, and innovative investing — will create smarter and stronger investment portfolios for an uncertain future.

To learn more about aligning your portfolio with sustainability, resilience, and innovation, listen to the full episode here.

Do you have questions or would you like to explore how to make your investments more resilient? Contact us at info@earthequityadvisors.com.

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We’d love to hear your thoughts on this topic. Share your feedback or suggest future topics by contacting us at info@earthequityadvisors.com.

 

Be good. Invest better.

The Earth Equity Team