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Johnson Private Wealth Management, LLC

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8770 W. Bryn Mawr Ave.,  Suite 1300,  Chicago, IL 60631

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Sustainable Investing - a new level of fiduciary responsibility

How will your portfolio be affected by climate change? Can corporate governance issues impact a company’s bottom line? Do you value equality in the workplace? Do the companies you’re invested in take measures to reduce their impact on the environment?

 

These are some of the questions to which Sustainable Investing responds. We believe that Sustainability is fast becoming the corporate imperative of the 21st century as companies around the world not only begin to recognize the global challenges associated with climate change and booming populations, but also note the strategic and financial advantages associated with concerted, enterprise-wide, sustainable efforts. For these reasons, many companies are beginning to take great measures to integrate sustainable processes and procedures into every corner of their businesses and business plans.

 

Over $2 trillion is invested sustainably in the US, and over $21 trillion worldwide, up 63% in the past 3 years.³

 

Sustainable Investing is the method of consciously electing to invest in companies that practice enterprise wide sustainable processes. Research shows that companies with highly rated sustainable procedures and processes tend to have higher price targets and lower cost of capital, which may improve long-term stock price performance.¹²

 

Sustainable Investing is also called ESG (Environmental, Social, Governance) Investing, Impact Investing, or CSR (Corporate Social Responsibility) Investing. Environmental, Social, and Governance factors have emerged as important areas of concern in measuring the sustainable and ethical impact of an investment. Corporate Social Responsibility looks at business practices related to the environment, employees, governance, and impact on the community. Here at JPWM, we simply call it Sustainable Investing.

 

Sustainable Investing may be a better way to invest because…

  • Companies with high environmental performance may bring less risk, be more efficient, and be better positioned in a global marketplace increasingly sensitive to environmental impact.

  • Companies with better employee relations and workplace practices may be more productive and have higher morale, lower turnover, and less absenteeism.

  • Companies with stronger corporate governance practices may be less likely to have scandals or run into trouble, financial or otherwise.

 

Sustainable Investing is one of Johnson Private Wealth Management’s core principles, and we strive to integrate sustainable investing into every Full-Service Wealth Management portfolio.

Why JPWM is a leader in Sustainable Investing:

 

1.  All advisors at JPWM are well-versed in Sustainable Investing. Our advisors understand the meaning, processes, and goals of Corporate Social Responsibility.

2. JPWM has created a proprietary Sustainability Scorecard. Every Full-Service Wealth Management client is provided with a sustainability rating and grade relative to the S&P 500 on a quarterly basis.

 

¹Journal of Banking & Finance., Vol 35, Issue 9, September 2011.  Pages 2388-2406

²The Impact of Corporate Social Responsibility on Investment Recommendations.  Ioannis Ioannou, George Serafeim.  Best Paper Proceedings,                  

Academy of Management 2010. Social Issues in Management Division, August 2010

³Exchanges at Goldman Sachs Podcast – The New Bottom Line: ESG Investing, July 21st, 2015.