What to know about sustainable investing

Submitted by Edward JonesPrint Story | Email Story
You may have heard about "sustainable investing."  But if you're not familiar with it, you may have some questions: What does it involve? Is it right for me? Can I follow a sustainable investing strategy and still get the portfolio performance I need to reach my goals?
 
Sustainable investing can be defined in different ways, with different terminologies. However, one way to look at a sustainable approach is by thinking of it as investing in a socially conscious way which may involve two broad categories: environmental, social and governance (ESG) investing and values-based investing.
 
As its name suggests, ESG investing incorporates a broad range of environmental, social and governance risks and opportunities, along with traditional financial measures, when making investment decisions. This approach may have a neutral impact on performance because it maintains a focus on managing risk, traditional fundamental analysis and diversification. Here's a quick look at the ESG elements:
 
  • Environmental – Companies  may work to reduce carbon emissions, invest in renewable energy, decrease pollution and conserve water resources.
  • Social – A business  may promote gender and pay equality within its workforce, and maintain positive labor relations and safe working conditions for employees.
  • Governance – Companies distinguished by good governance may institute strong ethics policies, provide transparent financial reporting and set policies to ensure it has an independent, objective board of directors.
You can pursue an ESG investing approach through individual stocks, mutual funds or exchange-traded funds (ETFs), which hold a variety of investments similar to mutual funds, but are generally passively managed – that is, they do little or no trading. As an ESG investor, you don't necessarily have to sacrifice performance because ESG investments generally fare about as well as the wider investment universe. Some investments may even gain from the ESG approach. For example, a company that invests in renewable energy may benefit from the move away from fossil fuel sources. 
 
Now, let's move on to values-based investing. When you follow a values-based approach, you can focus on specific themes where you may choose to include or exclude certain types of investments that align with your personal values.
 
So, you could refrain from investing in segments of the market, such as tobacco or firearms, or in companies that engage in certain business practices, such as animal testing. On the other hand, you could actively seek out investments that align with your values. For instance, if you're interested in climate change, you could invest in a mutual fund or ETF that contains companies in the solar or clean energy industries.
 
One potential limitation of values-based investing is that it may decrease the diversification of your portfolio and lead to materially lower returns due to narrowly focused investments, prioritization of non-financial goals and too many exclusions.
 
Ultimately, if you choose to include a sustainable investing approach, you will want – as you do in any investing scenario – to choose those investments that are suitable for your goals, risk tolerance and time horizon.
 
If sustainable investing interests you, give it some thought – you may find it rewarding to match your money with your beliefs.
 
This article was written by Edward Jones for use by your local Edward Jones financial advisor. Courtesy of Rob Adams, 71 Main Street, North Adams, MA 01247, 413-664-9253.. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. For more information, see This article was written by Edward Jones for use by your local Edward Jones financial advisor. Courtesy of Rob Adams, 71 Main Street, North Adams, MA 01247, 413-664-9253.. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. For more information go to www.edwardjones.com/rob-adams.
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McCann Sets Aside Funding For MSBA Feasibility Study

By Jack GuerinoiBerkshires Staff
NORTH ADAMS, Mass. — The McCann School Committee voted to prepare $275,000 for a Massachusetts School Building Authority feasibility study if the school is accepted into repair program.
 
"I don't think it's going to cost what I'm asking for, but I don't want to screw around," Superintendent James Brosnan said Thursday at the School Committee meeting. "When we are at the end of October, we will want to move fast and already have that money authorized. Maybe that will move us up a little as opposed to someone who has not gotten that done."
 
In 2023 the school submitted a statement of interest to be included in the accelerated rehabilitation program, specifically to address the building's aging roof and inefficient single-pane windows.
 
Brosnan said representatives from the MSBA visited the school in August for a tour.
 
"Part of their due diligence, after they read all of these applications and check the facts, is that they come to a site survey," he said. "They came out, and we walked the entire building. They looked at the glass, and we walked all over the roof. It was very positive."
 
He said there are 71 applications in this program cycle, and the school will find out in October if it has been accepted.
 
"I don't know where it goes because they obviously can't tell me. I just happen to know there are 71 applications," he said. "That tells us a lot of other people are competing with us."
 
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