Creating and sticking to an investment strategy that considers our personal values and the welfare of the planet and its people might seem like a relatively new concept, but it has been around for quite some time. In fact, centuries ago, the Quaker religion not only forbade its members from enslaving people but also from investing in companies that profited from slavery.
Undoubtedly, it’s also a concept that has evolved over time — and it continues to do so. As a society, we seem to be growing more and more disparate where our values are concerned, and what might seem to be socially responsible behavior to one investor could be overly permissive — or restrictive — to another.
After all, the core idea of investing is to generate profits — a return on our cash outlay. So, is it really possible to get a competitive return for our portfolios while still holding the companies that it contains responsible for their impact on the global community?
In short, yes. Our guest on this episode of A Place of Possibility™ will explain how to achieve this balance as an investor. Richard and Angela will speak with Sam Adams, CEO and Co-Founder of Vert Asset Management. Sam not only has substantial experience in the world of sustainable investing, but he also has quite an aptitude for simplifying this often-misunderstood topic.
We’ll be talking about:
- What sustainable investing really is
- The nuances of each sustainable investing methodology — Environmental, Social, and Governance investing (ESG), Socially Responsible investing (SRI), and Impact investing
- How the information that ESG fund managers must take into consideration differs from their more conventional counterparts
- The most common mistakes that investors make when trying to build a sustainable portfolio and why some of this confusion centers not on hard data but rather their personal values
Many of us tend to think that “doing good” for our planet and its inhabitants while “doing well” in our investing pursuits is difficult, if not impossible. But, as Sam will show you, with honest consideration of your own principles and some diligent research, these two values can peacefully — and profitably — coexist.
P.S. Looking to meet with Richard or Angela at our office in Alamo, CA? Want to discuss more of what you heard in this episode? Wondering where the heck you need to get started or what all of this means for your retirement plans? Schedule a free 30-minute session and find the peace of mind you deserve for the rest of your life. You can also reach us by calling 925.736.6410 or sending an email to Info@APlaceOfPossibility.com.
“For a long time — probably as far back as we can remember — companies managed for profits, but they were also looking after their people and were good stewards of the planet. Then, around the ’70s or ’80s, we became narrowly focused on profits. We said, ‘We want to eke out as many earnings every quarter as we possibly can.”
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A Glance at this Episode:
1:26 Before we get started, we wanted to update you on the debt ceiling and our advice on how to weather the storm.
2:37 We’ve been around this corner before, but you might now realize how many times we’ve actually raised the debt ceiling.
3:51 Congress could easily do away with the debt ceiling altogether, but it won’t because they are using us for their own politics.
4:00 The national debt currently stands at $31 trillion. That seems like a lot until you look at it from a historical perspective.
8:06 The short-term volatility that economic issues like the debt ceiling conflict cause are inevitable. Here’s what we recommend.
8:34 Our guest for this episode, Sam Adams, has deep roots in sustainable investing. Here are some details on his background.
10:05 Many of us don’t have a clear understanding of what sustainable investing is, in short, it’s when someone says, “I want my money to do good.”
10:41 Socially Responsible investing, or SRI, is the original form of sustainable investing that takes your deeply religious or ethical values and puts them to work in your portfolio.
11:46 Impact investing can affect social change more rapidly than other forms of sustainable investing. Here’s why.
12:18 Environmental, Social, and Governance (ESG) investing has a lot in common with its conventional counterpart, but they are weighing additional information on how companies are doing better for people and the planet.
14:00 A major cause of confusion that can lead well-intentioned investors to not know what their portfolio contains is simply not understanding each type of strategy.
15:04 Sustainable investing has become somewhat of a “political football,” with some who argue ESG could be woke or progressive.
15:56 The Triple Bottom Line is a core principle of sustainable investing – where we’re looking for profits but also after people and the planet.
17:42 Environmentalists over the years have led many people to believe it be a constraint. Listen in as Sam shares why.
18:04 Here’s a great example of how sustainability can lead to profitability.
20:14 Next, Sam talks about how ESG investing can produce returns comparable to a conventional approach.
21:47 Companies looking toward the future tend to be more sustainable, even if they’re in a traditionally non-sustainable sector.
23:41 More stringently minded investors focusing on sustainability might have to do a little more digging to build their portfolio.
25:30 Investing with a concern for climate change should be a priority for conventional and ESG investors alike because you want to ensure your portfolio is prepared.
26:58 If you’re on the fence about whether or not climate change will affect your life, consider these scenarios – like where you’re going to retire.
28:25 ESG investing is gaining momentum. Over 50% of the world’s central banks use ESG in the management of their portfolio, but that’s not all.
30:15 Sustainable investing won’t save the planet overnight, but it has a powerful effect because investors send a signal and support for change.
31:18 As an ESG investor, you’re joining a cohort of investors who are “changing the ask” of companies.
31:51 Thinking of getting started with sustainable investing? Here’s what Sam recommends.
33:38 Sam runs a global sustainable real estate fund. Here’s how his fund differs from its conventional counterparts – they invest in the most sustainable real estate companies.
Get in touch with Sam Adams:
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Links/Resources Mentioned in this Episode:
- To get your copy of Sam’s new book, “Your Essential Guide to Sustainable Investing,” follow this link.
- Want to learn more about investing from DMG? Don’t miss these other podcast episodes:
- A Place of Possibility Episode 35: How Do I Protect My Money from a Banking Crisis
- A Place of Possibility Episode 32: Top Financial Strategies That Seem Illegal, But Aren’t
- A Place of Possibility Episode 15: Standing Your Ground: Navigating Market Meltdowns Like a Champ
- A Place of Possibility Episode 10: How to Pick the Right Investments for You
- Ensure your family’s wealth will live on for generations to come. Order your copy of Endless Inheritance by Richard Del Monte today! https://aplaceofpossibility.com/endlessinheritance.
- If you’d like to know more about Del Monte Group’s approach to investing, we encourage you to download a copy of The Investment Answer, which we now have available as an Ebook. It’s a very easy read — you can probably get through the entire Ebook in just one evening — but it has the potential to revolutionize your relationship to investing and help you avoid many, if not all, of the mistakes you may be making without even knowing it. To get your copy, go to https://APlaceofPossibility.com/DMGInvestmentAnswerEbook.
- Del Monte Group offers a variety of free resources to help you make innovative and educated financial decisions so that you can keep, grow and enjoy your wealth starting now. Find them by visiting https://aplaceofpossibility.com/resources.
“One-size-fits-all” won’t fit you here! The Del Monte Group team understands that everyone’s financial goals are unique. That’s why we always provide customized advice. No matter where you are in life, you can depend on our proven expertise to provide financial planning support for long-term success. Ready to get started? Schedule a meeting with Richard or Angela in our Alamo, CA based office today or we can meet via Zoom! >> You can select a date and time that works for you via our calendar, call us at 925.736.6410, or send an email to Info@APlaceOfPossibility.com. We can’t wait to help you!