Sustainable Investing

There are many strategories to investing. One appoarch we here at Providential Partners use is called Sustainable Investing.  Different companies may call it different names. Here are some examples:

  • Socially Responsible Investing (SRI)
  • Impact Investing
  • Social Finance
  • Green investing
  • Natural Investing
  • Responsible Investing
  • Ethical Investing
  • Values Based Investing

Bascially Environmental, Social, and Governance Issues (ESG) are common denominators of Sustainable Investing strategies. There are Global and Investment Perspectives to these issues. ESG have multiple sub-categories. Below are some examples of each that we look into. 

Environmental Issues Sub-Categories

  • Carbon Footprint
  • Climate Change
  • Waste Management
  • Air & Water Pollution
  • Sustainable/Renewable Energy
  • Natural Resource Depletion
  • Deforestation
  • Water Scarcity

Social Issues Sub-Categories

  • Human rights
  • Indigenous rights
  • Employee rights
  • Labor standards
  • Wages
  • Child Labor
  • Discrimination
  • Harassment
  • Diversity
  • Customer satisfaction
  • Data privacy
  • Government and community relations
  • Religious values*

Governance Issues Sub-Categories

  • Board leadership and independence
  • Independent board and committees
  • Audit independence
  • CEO compensation versus cash flow
  • Share-based compensation
  • Protection of minority shareholders

There are various measurement techniques to manage the risk of these ESG issues. Here are some examples.

  • Exclusionary Screening
  • Best in Class
  • ESG Integration
  • Active Ownership
  • Impact Investing
  • Thematic Investing

Contact us if you would like to learn more about our approach to sustainable investing.