Posts Tagged ‘socially responsible investing’

ESG: A Paradigm for Resilience

To assert that the global COVID-19 pandemic has affected almost every part of our daily lives in 2020 would be an understatement. As the one-year anniversary of the virus’s outbreak approaches, it is becoming clear that some adaptations and trends necessitated by the pandemic are likely to have lasting impacts. For instance, the rise in flexible and home-based working arrangements has forced the commercial real estate market to pivot. And the expansion of voting methods, which resulted in a record turnout in the 2020 US presidential election, has fundamentally changed electoral politics.

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2019 Social Impact Report

Download a full PDF copy of our 2019 Social Impact Report

Intentional Growth, Deeper Commitment by Michael Kramer

2019 Overall SRI Impact

2019 Shareholder Advocacy Review

2019 Regenerative Investments

Progress on Private Prison Divestment by Kirbie Crowe

Divest, Then Reinvest by Scott Secrest

Spotlight: First Nations Oweesta by James Frazier

Spotlight: The Ujima Fund by Kate Poole

Spotlight: Ecotrust Forest Management by Malaika Maphalala

Mitigating Our Carbon Impact by Christopher Peck

 

 

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2019 SRI Impact

Natural Investments enjoyed significant growth since the last report, with sustainable, responsible, impact (SRI) managed assets increasing by 24% to $650M[1]. For the first time, we are using an impact data aggregation firm to delve deeper into our clients’ positive effects on the environmental, social, and governance (ESG) areas of the  economy. The additional information allows us to see the bigger picture of our collective efforts, as well as understand trends in areas that are important to our clients. For example, one of the most frequent requests by clients is to avoid direct investments in extractive oil, coal, and natural gas companies, which are driving the climate crisis. In the last year, client demand for our fossil-fuel-free portfolios rose by 127%.

2019 Social Impact Report

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2019 Regenerative Investments

When available, a portion of client assets are directed to so-called “regenerative investments” in the private market. Natural Investments seeks funds and companies with an elevated business model that takes into account the public good. The authenticity of the model is usually backed by language in the corporate charter or third-party certifications verifying moral conduct at all levels: people, planet, and prosperity. The objectives foster a regenerative business structure at the outset, that can then be maintained through any economic environment.

2019 Social Impact Report

$89M in regenerative investments are spread across several main categories of impact.

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Spotlight: The Ujima Fund

The Ujima Fund launched in Boston in 2017 as an outgrowth of years of organizing for racial and economic justice. Ujima, the first community-controlled loan fund in the US, has raised $1.7 million to date. Ujima is a Swahili word meaning “collective work and responsibility”. The membership of Ujima is comprised of more than 250 working-class people of color living in Boston. As members, they vote on community business standards, neighborhood investment plans, and top community needs. Each member, no matter their level of investment, has one vote. Together, members decide which black-owned cooperatives and social enterprises to invest in, as well as those owned by people of color.

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Mainstreaming Responsible Investing

We have arrived at a watershed moment in US history, when the principles and practices of sustainable, responsible, and impact investing are finally becoming mainstream. The biennial report on U.S. Sustainable, Responsible, and Impact Investing Trends 2018 (the Trends Report), published by US SIF Foundation, reveals a 38% increase over two years in the assets under professional management that integrate environmental and social corporate governance (ESG) criteria. This means that currently, one in every four dollars under professional management in this country, or $12 trillion, is invested using ethical or socially responsible criteria.

Twenty years ago, SRI assets tallied just over $600 billion. The new data shows that assets have increased 18-fold since 1995—an astounding annual growth rate of nearly 14%.

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Get Your Microplastics Out of My Beer!

The community I call home, Duluth, MN, happens to be perched on a steep hillside that runs down to the shores of the largest freshwater lake in the world, Lake Superior. There’s hardly a place in town where you can’t turn around and see the lake stretching out across the horizon. With such an expansive geographical feature nearby, it’s not surprising that people who live here share a special affinity for the lake, borne out in the names of local businesses (Lake Superior Brewing Company, Lake Superior Garden Center), local colleges (Lake Superior College), and the plethora of Lake Superior tattoos that adorn the bodies of many young locals.

Because Duluth people love Lake Superior with such fervor, we were outraged when we read about a recent study published in the peer-reviewed journal Plos One that found eight of nine tap water samples taken from all five Great Lakes, including our beloved Lake Superior, contained plastics. It was especially alarming for the significant population of beer lovers in our community to learn that scientists also found micro-plastics in all of the 12 brands of beer brewed with water drawn from the Great Lakes.

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Data vs. Drama – A Cautionary Tale

Factfulness by Hans Rosling

FACTFULNESS: Ten Reasons We’re Wrong About the World – and Why Things Are Better Than You Think
By Hans Rosling
Hardcover: 352 pp. Flatiron Books

The conundrum about this book is that it really should be read by those folks who never read books. You know who I’m talking about. The late Hans Rosling, who died in 2017 after an impressive career in education and public health, urges us to let the data tell the story, rather than imposing a narrative based on our “dramatic instincts.” He highlights ten ways that our instinctual bias and craving for drama, similar to our craving for sugar and lethargy, undermine our wellbeing.

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Advocating for Our Collective Future

I was one of several Natural Investments advisers to travel to Washington, D.C., in May to participate in a day of advocacy organized by USSIF: The Forum for Sustainable and Responsible Investment.

You may be wondering why a group of financial advisors who are on a mission to transform the world into a more equitable place would venture into the political arena. It’s a good question, and it’s one with an important answer. Right now, strategies for using investing as a tool for social change are under attack. The Security and Exchange Commission is trying to scare pension funds away from socially responsible investments by rolling back rules put in place during the Obama era. In Congress, Republicans are trying to strip

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A Radical New Way of Thinking About Investing

As frontrunners of the socially responsible investing movement, we at Natural Investments are “resilient investors” who are working off a radical new map of the investing universe. We invite you to navigate your own path across this vast terrain. But before we start exploring the nooks and crannies, let’s take a moment to ask the fundamental question: why invest?

Some would say this is obvious—we invest to build wealth. And what’s the point of building wealth? To be secure? To then build even more security and more wealth? Isn’t that what we all want? Well, no, at least not in the way it’s usually presented. While we take it as a given that most people want to increase their financial assets (at least up to a point) and have some nice things, traditional measurements of personal wealth are inadequate, often ignoring that which gives us the most satisfaction. Economists measure our “standard of living,” but what we’re really after is a higher “quality of life”—and while there is overlap, those two are not the same thing! The point of investing, we’d like to suggest, isn’t just about having more, but about being happy in a full, classical sense.

Let’s look back—back as far as 2500 years—for help in answering these questions. Aristotle, writing in the Nicomachean Ethics, described the point of a well-lived life, the goal we should be aiming for, as “blessedness.” For Aristotle, blessedness meant enjoying family and friends, with a deep feeling of well-being and contentment. In our day, this ideal might suggest a mature experience of knowing one’s mission, succeeding at pursuing that mission, having a solid primary relationship and close friends and family, having sufficient financial resources to live well according to your own standards, to be making a contribution and leaving a legacy one can be proud of, and staying in right relationship to the natural world that sustains life. It’s not about more—it’s about better!

We don’t think of investing as simply a professional, numbers-crunching discipline; for us it’s something much more fundamental. We believe investing should support financial goals (buy a house, start a business) and it should support the bigger and deeper and more profound purpose of a life: Aristotle’s blessedness. Investing can help each of us live a better life, and it can help improve communities and build a better world for all.

To do this, we must first break out of the confines that limit our ideas about wealth. Financial choices are just one part of a continual process of giving and receiving, balancing risk and reward, and exchanging time, energy, and money with those around you. So let’s make room for values and communities, for society and the Earth. And let’s expand our vision to include the interior realms of emotional and spiritual well-being as well, which are enduring elements of healthy human development. By doing so, we are bound to get more relevant, and more life-nourishing results.

(This article is adapted from The Resilient Investor by Hall Brill, Michael Kramer, and Christopher Peck and is part of an ongoing series in our monthly e-newsletter. Subscribe here.)

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