Sustainable investments are becoming increasingly popular as more people are looking to invest their money in a way that benefits them and others. We think that’s really exciting, as long as the selections meet your tax and long-term planning goals.
Sustainable investments, also known as ESG investing, is an approach to investing that considers environmental, social, and governance factors. Sustainable investing aims to generate both financial returns and a positive societal impact.
Your Sustainable Investment Options
There are many sustainable investment opportunities out there, including:
- renewable energy, such as wind and solar
- gender equality and minority empowerment
- sustainable forestry
- water infrastructure, waste management, and recycling
- clean transportation
Sustainable investing is a great way to support the causes you care about and positively impact the world while also growing your investment portfolio. If you’re interested in getting started with sustainable investing, we recommend speaking with your financial advisor and keeping a few things in mind.
- Align your values with your investment strategy. Figure out what causes you care about and look for investments that support those causes. For example, if you’re passionate about climate change, you might consider investing in companies working to develop renewable energy sources.
- Don’t sacrifice returns for impact. While it’s important to invest in a way that supports your values, you also want to ensure you’re getting a good return on your investment. Plenty of sustainable investments offer both financial returns and positive societal impact, so don’t settle for an investment that doesn’t provide both.
- Do your research. When considering any investment, it’s vital to do your research and understand the risks involved. That’s also true for sustainable investments. Make sure you understand the goals and methods of the companies you’re investing in and the causes they support before you commit your money. Involve and inform your financial advisor and accountant to maximize both returns and tax savings.
Sustainable investing is a great way to support the causes you care about while also growing your investment portfolio. Your financial advisor can help you pinpoint which companies are leaders in sustainability and have strong ESG ratings and track records. And, as your portfolio evolves, the team at Boris Benic and Associates will make sure your investments remain tax efficient.