ESG Links: Allocating with Purpose

Due to client demand, Ritholtz Wealth Management has created an ESG version of our classic asset allocation models, known as the Portland Portfolio. Research shows that high net worth families are increasingly interested in directing their investable assets toward companies with good records on Environmental, Social and Governance issues.

Please enjoy the below reads, curated by our in-house ESG expert, Joey Fishman. And if ESG investing is something you’d like to learn more about, talk to us here. 

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Before You Call Us Nuts, Hear Us Out. A Conservative Case for Climate Action (NYTimes)

Finally, Proof That Managing for the Long Term Pays Off (HBR), see also Promoting Long-Term Value Creation (Harvard Law)

Climate Change Is Giving Us ‘Pre-Traumatic Stress’ (Motherboard / Vice)

Burgeoning Marijuana Market Prompts Concerns about Crop’s Environmental Impact (Scientific American)

A Pitfall in Ethical Investing: ESG Disclosures Reflect Vulnerabilities, Not Virtues (SSRN)

How The Pentagon Plans To Protect Its Assets From Sea-Level Rise And Other Impacts (Nat Geo)

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ESG DEFINITIONS / TYPES

Examples of ESG incorporation strategies can be summarized as follows:

Positive/best-in-class: Investment in sectors, companies or projects selected for positive ESG performance relative to industry peers. This also includes avoiding companies that do not meet certain ESG performance thresholds.

Negative/exclusionary screening: The exclusion from a fund or plan of certain sectors or companies involved in activities deemed unacceptable or controversial.

ESG integration: The systematic and explicit inclusion by investment managers of ESG factors into traditional financial analysis.

Impact investing: Targeted investments, typically made in private markets, aimed at solving social or environmental problems.

Sustainability themed investing: The selection of assets specifically related to sustainability in single- or multi-themed funds.

Click here for more….http://www.ussif.org/esg

Talk to us about ESG investing here.