What is Sustainable Investing?
The terms are myriad: sustainable investing, socially responsible investing, impact investing, or ESG investing, yet the primary premise is simple: invest in companies which align with your personal values. This means supporting companies who actively manage the environmental and social impacts of their business.
Academic research has shown a sustainable approach is good for investors and for business, too. And, you're in excellent company; as of 2018 nearly 30 trillion dollars worldwide is held in sustainable investment strategies.
At Ironstream Capital, sustainable investing means finding and investing in companies who demonstrate best in class practices across the following three key pillars:
We believe climate change is real and will adversely affect companies inattentive to their environmental impact.
We emphasize companies focusing on resource use, emissions, and innovation.
We avoid companies whose business model is inherently environmentally unsustainable, such as fossil-fuels and mining.
We believe a company is best served by focusing on all stakeholders, not just shareholders.
We emphasize companies focusing on the treatment of their workforce, human rights record, impact to their community, and product responsibility.
We avoid companies with negative social impacts, such as alcohol, tobacco, and firearms.
In order to be truly sustainable, companies must generate long-term financial returns alongside strong social and environmental practices.
Without economic viability, positive environmental and social practices are useless.
We emphasize companies who have consistent and growing earnings, trade at attractive valuations, and exhibit strong price momentum.
1. Hurting the Planet is not Only Bad for Humanity, It Can Be Bad for Business. September 11, 2019. Kertscher, Tom
2. Global sustainable investing assets surged to $30 trillion in 2018. April 8, 2019. Michael Holder