Fundamental Research + Ethics
It goes by many names: socially responsible investing, ethical investing, socially conscious investments, “green” investing, SRI, or sustainable investing, but sustainable, responsible, and impact investing is all about one thing:
We’re talking about investments that consider both building wealth and making long-term positive impact on our planet, society, and future.
Strategy
First, we use traditional fundamental analysis as the basis for the construction of our portfolios. Next, we combine 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 metrics just like any “traditional” asset manager does. Of course, these metrics are important, but we take it one step further and also apply our own rigorous, responsible due diligence to ensure that our investments truly align with our values.
ASSET ALLOCATION
Creating diversified, risk-smart portfolios
We created our own asset allocation analytical model because we weren’t satisfied by any current evaluation models and wanted to offer this enhanced value to our clients. The model incorporates both historic volatility metrics and forward-looking demand. It is complemented 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. We believe in doing the right thing – as journalist Bill McKibben says, “are willing to alter the chemical composition of the atmosphere in order to make more money?”
Plus, we now have definitive evidence, from a GMO Investment Management study, that eliminating the energy sector does not negatively impact investment performance.
SCREENING
Enhanced Due Diligence
Sustainable, responsible, and impact 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 the next 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?
More About Our 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.
