Three styles of investing fulfill this: Environmental, social and governance (ESG), socially responsible investing (SRI) and impact investing. ESG/SRI principles are not part of any indexed investment opportunity, and will not recognize ESG/SRI considerations to the extent that Atlas uses these investments. In that case, it could make sense to sign up with a robo-advisor. Sin Stocks ... FTSE4Good Index Series is a series of equity indexes that include companies that meet globally-recognized social responsibility standards such as ESG. (2006). Socially responsible investing (SRI) has been around for a long time. Corporate engagement and impact investing. SRI investing is also known as green or ethical investing. situation is that it would be nearly impossible to develop a fully allocated portfolio No Negative ScreensSpecific investments are not prohibited, but rather rankings are assigned to ESG factors for a company in any industry. The views presented in this material may not be relied upon as an indication of trading intent on behalf of any Commonfund fund, or of any Commonfund manager. The table below lists common ESG factors that are considered. object-fit: cover; According to the 2006 Cone Millennial Cause Study,1 the majority of this generation is more likely to trust a company or purchase a company’s products when the company is considered socially or environmentally responsible. For example, if an investor feels strongly about the adverse effects of a specific industry on the environment, they might avoid investing in companies that don’t adhere to environmentally friendly manufacturing processes. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. More Universal ApproachESG is still in development, so the application of these factors will evolve, but the theory is that certain factors have broad applicability to all investment options. } Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The MSCI KLD 400 Social Index includes 400 socially conscious companies and excludes those that engage in business with a negative social impact. Views attributed to third parties are presented to demonstrate the existence of points of view, not as a basis for recommendations or as investment advice. This could also result in potentially lower returns. Investing isn’t always easy, especially when you want to maximize your earnings but don’t quite know how. Accessed April 15, 2020. Most specifically, this type of investing considers how these three factors affect the performance of an investment and, therefore, an investor’s returns. Whereas the 1980s and 1990s had just a handful of SRI fund offerings (the ESG acronym was not used until the late 2000s), today an investor can pick from hundreds if not thousands of SRI / ESG mutual funds and exchange-traded funds (ETFs). How … Though similar, the two have some major differences. SEC registration does not constitute an endorsement of Atlas by the SEC nor does it indicate that the advisor has attained a particular level of skill or ability. Conversely, roughly half of Millennials surveyed are more likely to refuse a product or service from a … Consequently, developing a single set of criteria for ESG/SRI security selection using the selective screening approach is unlikely. It’s estimated that in 2016 U.S. asset managers were applying ESG criteria to approximately $8.7 trillion, a nearly 33% increase from the asset total in 2014. Please remember that all investments carry some level of risk, including the potential loss of principal invested.