ESG Investing Then
Decades ago, socially responsible investing (SRI), more commonly referred to as sustainable investing or environmental, social, and governance investing (ESG), was working hard to shed a reputation of underperforming more traditional investment methods. ESG investing faced the challenge of demonstrating that it was possible to screen out certain sectors and industries, like fossil fuels, gambling, tobacco, and defense/weapons companies, without underperforming traditional equity and debt benchmarks.
ESG Investing Now
Investing for a return and investing for good are no longer mutually exclusive. Sustainable investing strategies can have both qualitative and quantitative advantages over traditional investment approaches.
Corporations with unfavorable environmental and social practices have thought of ESG as detractions from shareholder value. Today many S&P 500 companies adopt socially responsible ESG policies in recognition that they need to be more environmentally accountable.
Shaping Tomorrow
BaldwinClarke’s Sustainable Focus
BaldwinClarke remains committed to serving socially conscious individuals, families, business owners, and endowments and trusts. We can craft strategies and tailored portfolios that reflect the impact our clients want to have in the world through their sustainable investments.
The Client-Centric ESG Process
ESG investing can be the core of your portfolio or an adjunct to a more traditional approach. Our process for defining this balance and delivering your socially responsible investing strategy comes down to five steps:
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Identify Mission & GoalsWe work to gain a fundamental understanding of what’s important to you.
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Explore OptionsWe detail, define, and clearly articulate the options available to you.
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Align & ImplementOur "open architecture" approach is highly vetted based on Morningstar's Sustainability Rating system. Their research identifies socially responsible separate account managers, mutual funds, and Exchange Traded Funds (ETF’s).
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Monitor, Measure & ReassessFunds and managers are monitored by Morningstar on an ongoing basis to ensure adherence to their ESG investment strategy. Performance is not only measured and benchmarked, but also clear and transparent
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Make a DifferenceWe help support the causes that matter to you and the companies that align with your philosophies.
Investments are chosen based on their Morningstar Sustainability Rating (a system developed in 2016 by Morningstar to help investors evaluate portfolios on environmental, social and governance factors).
The Morningstar Sustainability Rating is calculated using Sustainalytics’ ESG Risk Ratings for corporate issuers (which measures the magnitude of a company’s unmanaged ESG risks) and Sustainalytics’ Country Risk Ratings for sovereign issuers (which assesses the risks to a sovereign entity’s socioeconomic well-being by combining an assessment of the government entity’s current stock of capital with an assessment of its ability to manage the wealth in a sustainable manner).
