Our approach to socially responsible and ESG investing
Investors have a unique opportunity to influence positive social and environmental change through the financial markets. Little & Associates Wealth Management works with private clients, not-for-profits, foundations, and organizations who seek comprehensive wealth management strategies that complement their vision for social change. We promote sustainability and good governance by integrating a comprehensive screening process when selecting investments based on environmental, social and governance (ESG) factors. This approach guides clients through an investment experience that seeks long-term financial returns while promoting sustainable solutions.
Socially Responsible Investing
Socially Responsible Investing (SRI) or ethical investing can be broadly defined as the integration of social and environmental principles into the investment decision-making process. The Social Investment Organization (SIO), the national nonprofit association for the SRI industry in Canada, describes three main components to SRI investing.
1. Screening: Negative screens are based on values-based social criteria and are frequently used to exclude companies such as those involved in tobacco, alcohol or weapons production. Positive screens are used to identify industries that create benefits for investors and the planet, such as alternative energy. Bottom-up screens help identify firms with best-of-sector practices relating to environmental impact, community involvement, and employee relations.
2. Shareholder Activism: Instead of simply avoiding problem companies, some SRI investors try to exert pressure to change them. This involves activities such as the use of shareholder resolutions or proxy voting policies.
3. Community and Economic Development: This process looks for companies that are contributing to the well-being of a community by investing in equity vehicles that target community development or serve low-income or disadvantaged groups.
Interest in Socially Responsible Investing is growing as more and more people become concerned about climate change and corporate governance, and want their investment portfolio to reflect these concerns.
