Sustainable Investment Strategies
At Veris, we are deeply committed to helping our clients earn competitive investment returns while navigating the ever-expanding terrain of sustainable finance. We believe that considering a range of business, social, environmental, and economic factors that are not typically included in conventional financial analyses only strengthens investment decisions.
We live in a time when we can no longer ignore the links between global issues and individual choices. The issues we face today are unlike any we have ever encountered, in terms of their scale and complexity. But daunting challenges create tremendous possibilities. Helping our clients manage their individual and institutional wealth in a sustainable manner is our preferred response to what’s occurring in our modern world – a response that allows us to act with empathy, foresight, and integrity as we mobilize capital resources on behalf of new solutions.
Making good investments while making a positive difference in the world is not an especially new idea; there is something inherently gratifying about aligning one’s investments with one’s values or leveraging financial resources to earn a competitive return while driving social and environmental change. But recently these approaches have become increasingly popular, presenting investors with a wide range of opportunities. In addition, there is now a considerable body of financial data that dispels any remaining myths about sustainable investing.
Understanding the landscape of sustainable investing is Veris’ core expertise. Our work is to help our clients navigate the field. Below are the sustainable investment practices we use.
ESG is an abbreviation for Environmental, Social, and strategic Governance business factors. ESG Investing strategies rely on these factors to identify forward thinking, well-managed companies while offering insight into the degree to which companies and their products impact our communities and the environment. When performing investment research, these factors are integrated with traditional investment analysis. Companies are increasingly using these factors to evaluate and improve their own operations, which often results in better economic performance and increased shareholder value over the long term.
Mission Related Investing (MRI), or Mission Investing (MI), is used primarily by foundations and other mission-driven organizations. This approach aligns financial assets with mission outcomes in an effort to meet targeted financial returns and amplify the impact of programmatic activity. MRI includes both traditional investments (which seek market-rate returns) and Program Related Investments (PRI), where the primary intent is a high level of mission-aligned impact.
Impact and Community Investing focuses on addressing major social and/or environmental challenges while generating financial returns. Impact Investing can be applied as a lens across an entire portfolio. Like risk and return, Veris builds portfolios with different levels of impact across all asset classes: High, Broad and Do No Harm. Impact Investing also refers to the component of portfolios that is most targeted on achieving environmental and social impacts. This may be in fixed income community loan funds or highly targeted environmental private equity funds.
Socially Responsible and Sustainable Investing (SRI) is one of the terms often used to describe the field of sustainable investing. It is also the approach from which many of the other forms emerged, and the strategy most frequently used in combination with others. SRI typically seeks to maximize returns within a framework of personal values. To achieve this, it employs three primary strategies: investment screening and ESG analysis, shareholder advocacy, and community/impact investing.
Ethical Investing, also referred to as Values Alignment, is often used to describe one of the distinguishing characteristics that separates traditional investment approaches from those within the sustainable universe. This approach is based on the idea that who we are is reflected in our individual choices – investment decisions included. By integrating our personal ideals and beliefs into our decision-making criteria, we can endeavor to achieve our goals in a manner consistent with our values. And as the argument goes, we’re likely to make wiser financial choices in the process.