Gone are the days when corporations were only about profits. For investors who want to have a positive impact on society, sustainable, responsible and impact investing (SRI) has become increasingly popular. Falcons Rock Impact Investments helps you leave your mark on the world: we want to make sure that your money can do well while doing good…the “triple bottom line” of people, planet, and profits.
Before You Invest
Aside from funding for good, you as an investor should do some homework before you select a portfolio. Get to know the investment world and consider your goals. Your ethical fund choices will likely be dictated by the markets and the things you believe in. View our process to better help you prepare.
What Funds and Investments are Considered?
To be considered an SRI fund, it must incorporate environmental, social and governance (ESG) criteria in the investment process. In order to determine whether specific investments meet these requirements, fund managers will utilize data to screen for positive ESG metrics. Companies held to these standards need to prove through their practices and transparency that they are worthy of your investment.
When You Decide to Invest
Impact investments aren’t much different from other kinds of funds in terms of the end goal: generating a long-term return on your investment. Research has shown that companies that implement sustainable business practices generally perform better financially over time. Once a fund invests in a company, it’s given shareholder status and the fund manager can then serve as your proxy. This means that the fund manager will engage with companies to encourage the socially-responsible behavior that drew you to invest with them.
What the Funds Management Firm Does
You don’t have the time to represent your interests to all the companies you’ve invested in through a fund, so there are several ways that a fund’s management firm can hold the organizations you invest in accountable for their SRI criteria. In addition to voting on your behalf and discussing issues of social responsibility with the companies, the fund can work on public policy, file proposals, write letters, offer advice or constructive criticism to companies, provide insight into shareholder views by attending shareholder meetings, and, when necessary, remove companies from ethical funds investment lists.
Learn More with Falcons Rock Impact Investments
While more people are talking about it, the world of SRI investing is still evolving. Everyone from experienced investors to people looking for their first mutual fund still has much to learn about this area. No matter who you are or what mark you want to leave on the world, we can help you do more. Read our frequently asked questions to learn more about Falcons Rock.