Implement Sustainable Investing through Targeted Impact Themes

Learn more about Impact Themes

Sustainable investing unlocks the ability to align an investor’s social and environmental priorities within their portfolio. This approach to investing is actionable – it reflects a set of objectives you, as the advisor, have the ability to implement in your client’s portfolio, in concert with their passions, values, and preferences. Envestnet has developed a sustainable investing suite of tips, tools, and reference guides, including this one, to simplify matters and assist you along the way.

As you consider your client’s social and environmental interests, it’s critical to determine what your clients care about most. To assist you, we’ve identified five themes – each with a description, set of characteristics, and investment focus – that represent facets of sustainability you can implement in your client’s portfolio. Each of these five themes constitutes a key component of sustainability: finding solutions to a changing climate, caring for our planet via conservation, striving for a more equitable society for all walks of life, improving your community, and ensuring a healthy lifestyle is accessible to everyone.

For more detail, review this guide to determine which theme best suits your client.
Theme
Climate

Investment Focus

Look for investment strategies that focus on climate change. This may include investments in fossil-fuel-free, low carbon, climate solutions, clean energy, and green bonds, among others.

Potential Investor Characteristics

  • Cares about climate change and wants to do something about it or participates in climate protests to ensure their voice is heard.
  • Drives a hybrid or electric car and may be a vegetarian or vegan.
  • Buys renewable energy for home, owns solar panels or invests in energy efficiency measures
  • Works in a climate-related field (e.g., science, renewable energy, environmental consulting or advocacy)
  • Volunteers with climate-related organizations
Theme
Conservation

Investment Focus

Look for investment strategies that focus on natural resource conservation. This may include investments in water sustainability, sustainable agriculture, and waste management, among others.

Potential Investor Characteristics

  • Buys organic and prefers to eat locally produced foods or may recycle and/or compost.
  • Is passionate about water rights/water conservation.
  • Works in a conservation-related field (e.g., water, agriculture, pollution, environmental engineering, EPA, environmental consulting or advocacy)
  • Volunteers with environmental organizations, such as sustainable farms, trash cleanups, wildlife conservation, or ecosystem (forest, prairie, wetland, coastal/ocean, etc.) and biodiversity preservation groups
Theme
Diversity

Investment Focus

Look for investment strategies that focus on diversity, equity, and inclusion. This may include investments supporting human rights, social justice, and LGBTQ+ empowerment, among others.

Potential Investor Characteristics

  • Works in advocacy, serving communities or at organizations that focus on equal access and/or equal rights (e.g. Black Lives Matter, LGBTQ+ rights, Equal Justice Initiative, the Me Too movement)
  • Believes more representation of women and minorities on corporate boards is essential
  • Volunteers or is involved in organizations promoting equal opportunity and equal access
  • Participates in an employee resource group at work that advocates for more diversity in the workplace and is passionate about allyship
Theme
Community

Investment Focus

Look for investment strategies that offer exposure to community-based investing. This may include investments in affordable housing, access to healthcare, education, and financial inclusion, among others.

Potential Investor Characteristics

  • Prioritizes shopping locally at small businesses, family-owned stores, or farmers’ markets
  • Believes companies need to pay higher wages to meet the basic needs of families
  • Works for the education system or serves communities in some capacity (e.g., firefighter, police, government worker, civil servant, religious organization employee or volunteer at local homeless shelter, food bank or hospital)
  • Donates to organizations that support affordable housing for communities in need and wishes underserved communities had more access to loans and financial education
Theme
Wellness

Investment Focus

Look for investment strategies that focus on health and wellness. This may include investments in healthcare services, nutrition, and education, among others.

Potential Investor Characteristics

  • Works in the healthcare or health and human services industries and enjoys fitness and health
  • Is passionate about fighting for health and wellness issues, such as childhood obesity and food insecurity
  • Believes mental health issues need to be taken more seriously
  • Advocates for food justice and better access to healthy foods for people in the most vulnerable communities and considers product labeling, calling out misleading food advertisements
THIS WEBPAGE IS FOR INVESTMENT PROFESSIONAL USE ONLY. NOT INTENDED FOR PRIVATE INVESTORS.

The information, analysis, and opinions expressed herein are for general information only. Nothing contained on this webpage 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. Investing carries certain risks and there is no assurance that investing in accordance with the portfolios mentioned will provide positive performance over any period of time. Investors could lose money if they invest in accordance with the portfolios discussed herein. Past performance is not indicative of future results.

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