Sustainable Investing is an investment discipline that considers environmental, social and corporate governance (ESG) factors when selecting investments for a portfolio.
Skyline Advisors believes that your investments can have a positive impact on our environment and on a wide range of social issues while achieving competitive long-term performance goals. One does not need to exclude the other.
As a socially responsible investment advisor in Bellingham, WA, we are conscious of our impact in our community:
- Skyline Advisors donates to local charities.
- Our employees are active in community projects and non-profit events.
- Skyline Advisors is a member of Sustainable Connections, a local non-profit that works to “Educate, connect and promote local business to build strong communities.”
- We offer Investment Portfolios that Align Your Values with Your Money.
A vital community requires thriving business and promotes good stewardship of our resources. Our money has an impact and an increasing number of investors integrate sustainable practices into their investment portfolios as part of their financial plan.
Skyline Advisors can help you align your values with your money
As a socially responsible investment company, our portfolio principles and investment philosophy are used to create investment portfolios that are diversified and allocated prudently according to your financial profile and goals.
Our Advisors work as a Team to build diversified, robust portfolios that integrate your social and environmental values with your financial goals.
These portfolios can include the following:
- Impact Investing.
Seeking investment opportunities that can produce social or environmental benefits. This often focuses on community development and other targeted local projects. An example of Impact Investing would be to provide lending for low-income housing.
- Thematic Investing.
Investing along themes such as alternative energy, religious values, fossil fuel divestment and others. An example would be a portfolio that evaluates the carbon footprint of its holdings and targets fossil fuel divestment.
- ESG Investing.
Selecting for companies that exhibit leadership in environmental policies, corporate culture, minority participation and in other societal areas, whether on an absolute basis, or relative to their peers. This can also include Negative Screening where you avoid companies and/or industries that do not match your values. An example would be a fund that maximizes exposure to positive environmental, social and governance (ESG) factors and minimizes exposure to companies that have low ESG ratings.
Skyline Advisors may utilize mutual funds, exchange traded funds (ETFs) and can discuss other more targeted impact investments that suit your goals within the ESG investing framework and as an impact investing firm.
DOES SOCIALLY RESPONSIBLE INVESTING MAKE FINANCIAL SENSE?
Socially Responsible Investing (SRI) can make financial sense. Over the years, numerous studies and research have shown a positive correlation between strong environmental, social, and governance (ESG) performance and financial performance. Here are some key points highlighting the financial benefits of SRI:
1. Long-Term Performance: Companies that prioritize sustainability, ethical practices, and stakeholder management often exhibit long-term resilience and better financial performance. They tend to have a more robust risk management framework, which can lead to improved operational efficiency, cost reduction, and enhanced profitability over time. Additionally, our country’s sustainable goals will require significant investment in future years that may benefit certain industries and negatively impact others. There will be winners and losers.
2. Risk Mitigation: Integrating ESG factors into investment analysis helps identify and mitigate potential risks associated with unsustainable or unethical business practices. Companies with poor ESG performance may face reputational, legal, regulatory, and operational risks, which could impact their financial performance negatively. By considering these risks, SRI investors aim to build more resilient portfolios.
3. Market Demand and Investor Preferences: As investors increasingly prioritize sustainability and responsible business practices, companies with strong ESG performance often attract greater investor interest and demand. This can lead to improved stock performance and valuation, benefiting SRI portfolios. Sustainable businesses are more likely to attract new cash flow and investment.
4. Access to Growth Opportunities: SRI investors can gain exposure to emerging industries and sectors that focus on sustainability, renewable energy, clean technology, and social innovation. These areas often present significant growth potential, as societies and economies shift towards more sustainable practices.
5. Enhanced Reputation and Brand Value: Companies with strong ESG performance tend to build a positive reputation and brand image, which can translate into increased customer loyalty, consumer trust, and market share. This can positively impact their financial performance and shareholder value.
6. Regulatory and Policy Support: Governments and regulatory bodies worldwide are increasingly recognizing the importance of sustainable finance. They are introducing policies, regulations, and incentives that encourage companies to adopt responsible business practices. This support can create a favorable regulatory environment for SRI investments, potentially benefiting financial returns.
It’s important to note that while SRI can offer financial benefits, individual investment outcomes may vary, and it’s essential to conduct thorough research and analysis before making investment decisions. Investors should carefully consider their financial goals, risk tolerance, and time horizon when incorporating SRI strategies into their investment approach.
Contact us for more information.