Environment, Social and Governance investing

"Banks have a significant impact on people, communities and countries. Our first priority is doing our jobs as bankers well, and serving our clients with integrity, every day. At RBC, we also take our responsibilities in the community, marketplace, workplace and to the planet seriously."

– Gordon M. Nixon, Former President and CEO, Royal Bank of Canada

What it is

Environmental, Social and Governance Investing (also sometimes called ESG or Socially Responsible Investing) is an approach to wealth management that integrates your core values and your financial goals, helping ensure that the investments you’re choosing align with your value system and that your funds are being used to impact society for the greater good.

A growing trend – with a long history

Although ESG has become a hot topic lately, the first instances of this type of investing date back hundreds of years, from Quakers that refused to invest in weapons or slavery to pacifists that boycotted bonds during the Revolutionary War. So making smart use of your money by putting it toward the things you believe in while still making a reasonable return is not a new idea. However with more tools and choices available it may now be easier to accomplish your ESG investment goals.

How it works

There are a variety of socially responsibly investment techniques that we can use to better align your portfolio with your beliefs.

  • Engagement — With this tactic, we focus on leveraging ownership rights to influence corporate boards and management to make wise decisions.
  • Negative screening — There may be certain companies or sectors that you want to avoid putting your wealth toward altogether, such as tobacco or alcohol. We can screen for these companies to make sure your funds are only going toward industries you can support.
  • Thematic investing — Conversely, there may be particular sectors that you want to support, such as green energy or those creating innovative solutions to global challenges. We can put your funds to use supporting these organizations.
  • Impact investing — In Impact Investing, capital is directed toward communities traditionally underserved by the financial services.

A personalized approach

Before I begin, I work with you to draft an investment policy statement, in order to define your unique social impact and financial goals. I then use the policy to select investment strategies and securities that are appropriate for your specific needs. And I monitor this on an ongoing basis to make sure your portfolio is in line with both your values and wealth management objectives. It is possible to construct a well-diversified portfolio while adhering to the beliefs you hold most dear.

Contact me today to learn more or to set up a free consultation.