Fundamental Research + Ethics
It goes by many names: socially responsible investing, ethical investing, socially conscious investments, “green” investing, SRI, sustainable investing…but sustainable, responsible and impact investing is all about one thing:
Sustainable, responsible and impact investing = investments that consider both your financial return and social good to create a long-term positive impact.
Strategy
We use traditional fundamental analysis as a basis for our portfolios, combined with our own proprietary asset allocation analytical models and enhanced socially and environmentally responsible due diligence to create impactful, risk-aware portfolios for our clients.
FUNDAMENTAL ANALYSIS
Proven analytics
Our portfolios are grounded in solid fundamental economic analysis. We look at price/earnings ratios, debt levels, growth and other important metrics just like any “traditional” asset manager does. But, because we only invest with our values, we also incorporate enhanced socially and environmentally responsible due diligence.
ASSET ALLOCATION
Creating diversified, risk-smart portfolios
We created our own asset allocation analytical model because we wanted to offer enhanced value to our clients. The model incorporates both forward-looking demand and historic volatility metrics. It is complimented by research from several of the top asset management firms in the world.
FOSSIL-FUEL-FREE
Align your investments with your values ®
We believe that the risk is too great to own fossil fuel extraction, processing or transportation companies because of issues such as stranded assets, extreme volatility in the petroleum markets and government regulation. More importantly, we do not want to own companies that, as journalist Bill McKibben says “are willing to alter the chemical composition of the atmosphere in order to make more money.” We believe in doing the right thing!
Plus, a study from GMO Investment Management now shows that eliminating the energy sector does not negatively impact investment performance.
SCREENING
Enhanced Due Diligence
Responsible investing includes the screening of portfolios based on :
- Environmental track record & sustainability
- Corporate governance, business ethics & transparency
- Product safety
- Fair & safe workplace
- International human rights
- Community involvement
POSITIVE BIAS
What do we want to own
Excluding fossil fuels from our portfolios frees up capital to support companies that make a positive difference in the world. Our portfolios typically include:
- Alternative energy
- Energy efficiency
- Water technology
- Natural & organic products and services
- Green real estate
- Technology, big data & internet of things
- Green finance
- Community investments
DISCRETION/TACTICAL
Actively managed portfolios
We believe there is power in active management – especially as we work to shift the paradigm from an old economy model to a new economy model. The ability to make investments in positive opportunities as they arise gives us an advantage over passive strategies.
As our colleague, Garvin Jabusch of Green Alpha Advisors says, passive, index-based investing is basically slow motion active management.
Want to know more about our Investment Philosophy?
Portfolios
Each client portfolio is unique, based on their risk and return needs. We typically use a combination of one of our fossil fuel free diversified mutual fund models (conservative, balanced, aggressive or global equity), Calvert Impact Notes or managed individual equity models from our colleagues at Green Alpha Advisors.
Many client portfolios include Earth Equity’s Signature fossil fuel free individual stock portfolio, The Green Sage Sustainability Portfolio.
