Impact (aka Sustainable) Investing
Made to generate a measurable, beneficial social or environmental impact alongside (or in lieu of) a financial return. This is an umbrella for the strategies below.
Socially Responsible Investing (SRI) aka Green or Ethical Investing
Investment strategy which seeks to consider both financial return and social/environmental good to bring about a positive change. It is achieved by excluding investments in “sinful” industries (e.g., alcohol, tobacco, gambling, weapons), a negative screen.
Environment, Social, and Governance (ESG)
Investment strategy which seeks to consider both financial return and social/environmental good to bring about a positive change. It is achieved by integrating these 3 factors into investment analysis for the purposes of making investment selections, a positive screen.
Industry Trends On April 23, 2018, the Department of Labor published a “Field Assistance Bulletin” providing guidance to fiduciaries of private-sector employee benefit plans. The note served as a clarification related to the DOL 2015 guidance on economically targeted investments and the DOL 2016 guidance on shareholder engagement. While remaining clear that fiduciaries must prioritize…