Socially Responsible Investing

“Watch your thoughts; they become words. Watch your words; they become actions. Watch your actions; they become habits. Watch your habits; they become character. Watch your character; it becomes your destiny.” –Steve Jobs

Volunteerism and charitable giving are two practices used by individuals who want to do their part to make the world a better place. In recent years, a new practice has become increasingly popular: socially responsible investing. Socially responsible investing recognizes that an investment’s worth isn’t only in its potential short- and long-term returns; instead, with a socially responsible investing strategy, an investor can create a portfolio that aims to generate appropriate financial returns while also incorporating that investor’s goals for social change. There are a few different terms you may hear when you learn about socially responsible investing, including environmental, social, and governance (ESG) investing, socially responsible investing (SRI), and/or impact investing. • With ESG investing, investments are selected not only based on traditional fundamental analyses, but also based on the underlying environmental, social, and governance practices of the investment. • SRI involves eliminating or selecting investments based on a defined set of values (such as only investing in companies with a focus on environmental sustainability). • Impact investing involves investing in companies with specific goals and values believed to make a positive impact on society. At Means Wealth, we have seen interest in socially responsible investing growing among investors. As a result, in 2021 we implemented Fidelity Investment’s new ESG Pro tool, which allows us to better assess an investor’s ESG preferences and ensure their portfolio is appropriately invested to address the investor’s ESG-related goals. Please be sure to reach out to your advisor if you want to ensure that your socially responsible investing wishes are appropriately incorporated in your portfolio.