A growing number of investors are interested in making a positive impact with their investments, or are committed to aligning their investments with their personal values.
Socially Responsible Investing integrates Environmental, Social and Corporate Governance (ESG) criteria with investing.
For our clients’ SRI-focused portfolios, Springwater uses low cost mutual funds from Dimensional Fund Advisors and others. These funds use third-party evaluations of companies’ environmental impact, carbon emissions and mitigation strategies to weight stocks according to their company’s sustainability score. The higher the score, the greater the weight.
This weighting approach – as compared to a traditional “all in or out” screening methodology used by many other funds – leads to broader diversification and a larger range of investment options, while rewarding companies with sustainable business practices.
SRI portfolios can be constructed for individual investors, as well as retirement plans and trust accounts.