{"id":912,"date":"2021-09-17T16:19:00","date_gmt":"2021-09-17T16:19:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=912"},"modified":"2025-06-03T16:09:01","modified_gmt":"2025-06-03T16:09:01","slug":"what-is-sustainable-esg-investing","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/what-is-sustainable-esg-investing\/","title":{"rendered":"Sustainable Investing: How to Stop Funding Climate Change With Your Money"},"content":{"rendered":"\n

Past performance is no guarantee of future results\u2014or even a future at all.<\/em><\/strong><\/p>\n\n\n\n

\"Sustainable<\/figure>\n\n\n\n

Not to be dramatic, but the world is on fire, and it\u2019s expensive.<\/p>\n\n\n\n

Just last year, wildfires, hurricanes and droughts cost local and federal governments in the U.S. close to $100 billion in damages. In the stock market, shareholders are growing worried about the long-term profitability of fossil fuel investments. Scientists tell us to keep what\u2019s left of the world\u2019s oil and coal reserves\u2014somewhere between just 30 and 70 years\u2019 worth\u2014in the ground. So can it really be financially prudent to keep investing in companies like Shell, Exxon and Chevron unless they change their business model to be less reliant on diminishing resources?<\/p>\n\n\n\n

Anyone with a 401(k), IRA or other kind of investment account has probably felt this growing sense of cognitive dissonance. One one hand, investing for retirement (as opposed to keeping your extra cash in a normal savings account) is perhaps the most responsible way to make sure you\u2019ll have enough money as you age. But on the other hand, how responsible (and financially wise, for that matter) is it to invest in companies and industries that aren\u2019t thinking more than 30 years into the future?<\/p>\n\n\n\n

That\u2019s where sustainable investing comes in. If you\u2019re feeling conflicted about skeletons you might find inside your portfolio, read on to learn about the umbrella of \u201cESG\u201d investing, where a few forward-thinking alternatives exist.<\/p>\n\n\n\n

What is ESG investing?<\/h2>\n\n\n\n

The acronym \u201cESG\u201d stands for environmental, social and (corporate) governance. ESG investing has been on the rise since the mid-2000s, and it\u2019s recently come to reference a growing segment of impact investors, shareholder activists and corporate analysts dedicated to doing good by trading on Wall Street.<\/p>\n\n\n\n

ESG indicators include environmental criteria (like a company\u2019s greenhouse gas emissions, rate of renewable energy usage, pollution, and\/or treatment of animals), social criteria (like whether a company donates a portion of its profits to human rights organizations), and governance criteria (whether a company is transparent and\/or allows its stakeholders to vote on important matters).<\/p>\n\n\n\n

Financial products are evaluated on these indicators so that members of the general public can have some sense of what their money would support if they were to store it in certain banks or invest in particular funds.<\/p>\n\n\n\n

But before you run down to the nearest climate rally to celebrate, remember that ESG investing is still relatively new. Profit remains the top priority across the financial sector \u2014 and that probably won\u2019t change any time soon, according to Boris Khentov, SVP of operations and sustainable investing at Betterment, a U.S. financial advisory company.<\/p>\n\n\n\n

\u201cAs fiduciaries, helping our clients secure their financial futures remains our number-one objective always,\u201d says Khentov. \u201cBut for a long time sustainable investing has been sort of plagued with institutional jargon. We now see our job as advisors to make sense of this entire new world.\u201d<\/p>\n\n\n\n

Here\u2019s what that new world looks like.<\/p>\n\n\n\n

Options for sustainable investing<\/h2>\n\n\n\n

Divestment<\/strong><\/h4>\n\n\n\n

If you\u2019ve heard of Fire Drill Fridays, you\u2019re probably familiar with the call for corporations, people and institutions to divest from the fossil fuel industry, as well as problematic industries like weapon manufacturing, private prisons and privately-funded migrant detention facilities.<\/p>\n\n\n\n

Divestment is simply reducing your amount of shares in a company or industry. The way to do that is, of course, to sell them. This is likely going to make you feel good, but just remember that if everyone sold shares at high volumes, it would drive the price down, and profit-hungry investors could more easily get their hands on cheap securities to later profit off of.<\/p>\n\n\n\n

Therefore, divestment is only one strategy for sustainable investing.<\/p>\n\n\n\n

Investment<\/strong><\/h4>\n\n\n\n

The opposite of divestment is investment. Last year, the University of Toronto made headlines for investing its $7 billion endowment in the debt of companies committed to lowering their carbon footprint.<\/p>\n\n\n\n

Everyday investors can also choose to invest strategically in companies or industries committed to sustainability, particularly if you prefer active over passive investing. However, cherry-picking stocks is one of the riskiest investment strategies for individuals, so it may be best to explore more passive, low-cost ways to build a diverse and socially-responsible investment (SRI) portfolio.<\/p>\n\n\n\n

Out of all investment options, index funds and ETFs tend to have the lowest fees and the broadest diversification. Compared to individual stocks, these funds are made up of a mix of company securities, whether across a particular sector, size or industry. Check with a broker or advisory firm to learn what SRI fund options exist.<\/p>\n\n\n\n

Another option is low- or no-fee mutual funds or Individual Retirement Accounts (IRAs). Aspiration has a $10 minimum to open a 100% fossil fuel-free retirement and\/or investment account. Signing up for the platform also includes a debit card which earns 0.5% cash back on purchases at sustainable businesses.<\/p>\n\n\n\n

Choosing an advisor for sustainable investing<\/strong><\/h4>\n\n\n\n

While the Vanguards of the world will likely offer the lowest advisory fees for most SRI funds, a smaller financial advisory may be advantageous when you want to nimbly adapt to the changing landscape of sustainable investing. Larger advisories are not always set up to quickly swap out securities, especially inside the most popular flagship funds such as the Vanguard Total Stock Market ETF (VTI). (Like its name suggests, this fund seeks to track the performance of all 100% of investible U.S. stocks.)<\/p>\n\n\n\n

\u201cBeing independent allows us to constantly scour the entire ecosystem and find the best [options],\u201d Khentov says about Betterment. \u201cWhen we find better ones, we swap them out. Our clients don’t have to think about choosing specific securities. That’s what we do as fiduciaries for them.\u201d<\/p>\n\n\n\n

Betterment offers three options for building SRI portfolios. However, the company is still defining and refining what \u201cSRI\u201d means to both it and its customers during this era in which sustainable investing is still \u201cnascent and open-ended,\u201d according to Khentov.<\/p>\n\n\n\n

\u201cIt’s extremely important for us when we talk to our clients that we are transparent. This is an evolving space. There are a lot of gaps in the quality of the data upon which these things are being evaluated and, quite frankly, entire categories of sustainable investing are emerging.\u201d<\/p>\n\n\n\n

For instance, while renewable energy investing is making news headlines amid political climate change debates, other categories of SRI metrics\u2014including a company\u2019s racial diversity, pay equity, health and safety of workers, tax compliance, and even how well a company addresses biodiversity within the supply chain\u2014are starting to sprout up.<\/p>\n\n\n\n

Crowdfunding and peer-to-peer investing platforms<\/strong><\/h4>\n\n\n\n

We can thank the crowdfunding space for being ahead of the game when it comes to sustainable investing. Platforms like Mainvest and FarmTogether make it easy for qualified investors to put their money into small businesses and farmland, respectively.<\/p>\n\n\n\n

Investing in small businesses might not seem at first like a form of ESG investing, but putting your money back into your local community helps people in towns across the U.S. access liveable wages and support their families. Investing in a local business also helps you get a close-up view of how the company is operating. You might even know the owners, compared to putting your trust in corporate boards where transparency isn\u2019t so accessible.<\/p>\n\n\n\n

Double your impact by choosing small businesses committed to zero- or low-waste practices, Black-owned establishments, and companies that source ingredients locally such as Brooklyn-based ACQ Bread Company. With Mainvest, you can make a minimum investment of $100, and every quarter the small businesses share a percentage of their profits with investors. There\u2019s no fee for investors, but businesses pay a 6% fee, which ultimately could impact an investor\u2019s ROI (something to keep in mind).<\/p>\n\n\n\n

Meanwhile, sustainable farmland is another growing area for ESG investing. After decades of extractive monoculture practices here in the U.S. that have stripped land of its nutrients and desecrated biodiversity, investing in sustainable farmland can help protect natural resources, better manage waste and improve soil quality. Not to mention, you can support ethical labor practices that help farm workers benefit from a living wage. Historically speaking, farmland offers consistent returns and diversification benefits as an uncorrelated asset. FarmTogether has a 1% fee for investors, which is higher than the best advisory fees for both mutual funds and index funds (they can range between roughly 0.05% and 1.5%).<\/p>\n\n\n\n

Shareholder activism<\/strong><\/h4>\n\n\n\n

If you\u2019re really into the topic of sustainable investing, you might be a budding shareholder activist.<\/p>\n\n\n\n

Technically, anyone who owns stock in a company is a shareholder. But to get real voting power and have a voice in how business is done, you need to own a good portion of the whole company.<\/p>\n\n\n\n

For years, this reality has dissuaded the average investor from being active in corporate decisions. But as we\u2019ve seen during high-profile events like the ousting of three Exxon Mobil board members last June thanks to new impact investment firm, Engine No. 1, shareholder activism has become a real threat to the status quo.<\/p>\n\n\n\n

Compared to the world\u2019s largest asset managers\u2014BlackRock, Vanguard, State Street, Fidelity\u2014everyday investors are the little guys. Can enough of us band together to demand that Exxon Mobil, for instance, ramp up its commitment to renewable energy?<\/p>\n\n\n\n

Maybe, says Khentov: \u201cThere are new channels of engagement and driving impact that are just emerging. The whole space is so dynamic.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Past performance is no guarantee of future results\u2014or even a future at all. Not to be dramatic, but the world is on fire, and it\u2019s expensive. Just last year, wildfires, hurricanes and droughts cost local and federal governments in the U.S. close to $100 billion in damages. In the stock market, shareholders are growing worried […]<\/p>\n","protected":false},"author":11,"featured_media":953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[3],"tags":[40,45,43,62],"post_authors":[82],"class_list":["post-912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-advanced-investing","tag-long-term-growth","tag-stocks","tag-sustainability"],"acf":[],"yoast_head":"\nWhat Is Sustainable Investing? 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class=\"wp-block-image\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Sustainable_Main_MO_1_383a54db22.png\" alt=\"Sustainable Investing: How to Stop Funding Climate Change With Your Money\"\/><\/figure>\n","innerContent":["\n<figure class=\"wp-block-image\"><img src=\"https:\/\/moneymade.io\/learn\/wp-content\/uploads\/2025\/05\/Money_Made_Sustainable_Main_MO_1_383a54db22.png\" alt=\"Sustainable Investing: How to Stop Funding Climate Change With Your Money\"\/><\/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Not to be dramatic, but the world is on fire, and it\u2019s expensive.<\/p>\n","innerContent":["\n<p>Not to be dramatic, but the world is on fire, and it\u2019s expensive.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Just last year, wildfires, hurricanes and droughts cost local and federal governments in the U.S. close to $100 billion in damages. In the stock market, shareholders are growing worried about the long-term profitability of fossil fuel investments. Scientists tell us to keep what\u2019s left of the world\u2019s oil and coal reserves\u2014somewhere between just 30 and 70 years\u2019 worth\u2014in the ground. So can it really be financially prudent to keep investing in companies like Shell, Exxon and Chevron unless they change their business model to be less reliant on diminishing resources?<\/p>\n","innerContent":["\n<p>Just last year, wildfires, hurricanes and droughts cost local and federal governments in the U.S. close to $100 billion in damages. In the stock market, shareholders are growing worried about the long-term profitability of fossil fuel investments. Scientists tell us to keep what\u2019s left of the world\u2019s oil and coal reserves\u2014somewhere between just 30 and 70 years\u2019 worth\u2014in the ground. So can it really be financially prudent to keep investing in companies like Shell, Exxon and Chevron unless they change their business model to be less reliant on diminishing resources?<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Anyone with a 401(k), IRA or other kind of investment account has probably felt this growing sense of cognitive dissonance. One one hand, investing for retirement (as opposed to keeping your extra cash in a normal savings account) is perhaps the most responsible way to make sure you\u2019ll have enough money as you age. But on the other hand, how responsible (and financially wise, for that matter) is it to invest in companies and industries that aren\u2019t thinking more than 30 years into the future?<\/p>\n","innerContent":["\n<p>Anyone with a 401(k), IRA or other kind of investment account has probably felt this growing sense of cognitive dissonance. One one hand, investing for retirement (as opposed to keeping your extra cash in a normal savings account) is perhaps the most responsible way to make sure you\u2019ll have enough money as you age. But on the other hand, how responsible (and financially wise, for that matter) is it to invest in companies and industries that aren\u2019t thinking more than 30 years into the future?<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>That\u2019s where sustainable investing comes in. If you\u2019re feeling conflicted about skeletons you might find inside your portfolio, read on to learn about the umbrella of \u201cESG\u201d investing, where a few forward-thinking alternatives exist.<\/p>\n","innerContent":["\n<p>That\u2019s where sustainable investing comes in. If you\u2019re feeling conflicted about skeletons you might find inside your portfolio, read on to learn about the umbrella of \u201cESG\u201d investing, where a few forward-thinking alternatives exist.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":[],"innerBlocks":[],"innerHTML":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-esg-investing\">What is ESG investing?<\/h2>\n","innerContent":["\n<h2 class=\"wp-block-heading\" id=\"h-what-is-esg-investing\">What is ESG investing?<\/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The acronym \u201cESG\u201d stands for environmental, social and (corporate) governance. ESG investing has been on the rise since the mid-2000s, and it\u2019s recently come to reference a growing segment of impact investors, shareholder activists and corporate analysts dedicated to doing good by trading on Wall Street.<\/p>\n","innerContent":["\n<p>The acronym \u201cESG\u201d stands for environmental, social and (corporate) governance. ESG investing has been on the rise since the mid-2000s, and it\u2019s recently come to reference a growing segment of impact investors, shareholder activists and corporate analysts dedicated to doing good by trading on Wall Street.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>ESG indicators include environmental criteria (like a company\u2019s greenhouse gas emissions, rate of renewable energy usage, pollution, and\/or treatment of animals), social criteria (like whether a company donates a portion of its profits to human rights organizations), and governance criteria (whether a company is transparent and\/or allows its stakeholders to vote on important matters).<\/p>\n","innerContent":["\n<p>ESG indicators include environmental criteria (like a company\u2019s greenhouse gas emissions, rate of renewable energy usage, pollution, and\/or treatment of animals), social criteria (like whether a company donates a portion of its profits to human rights organizations), and governance criteria (whether a company is transparent and\/or allows its stakeholders to vote on important matters).<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Financial products are evaluated on these indicators so that members of the general public can have some sense of what their money would support if they were to store it in certain banks or invest in particular funds.<\/p>\n","innerContent":["\n<p>Financial products are evaluated on these indicators so that members of the general public can have some sense of what their money would support if they were to store it in certain banks or invest in particular funds.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>But before you run down to the nearest climate rally to celebrate, remember that ESG investing is still relatively new. Profit remains the top priority across the financial sector \u2014 and that probably won\u2019t change any time soon, according to Boris Khentov, SVP of operations and sustainable investing at Betterment, a U.S. financial advisory company.<\/p>\n","innerContent":["\n<p>But before you run down to the nearest climate rally to celebrate, remember that ESG investing is still relatively new. Profit remains the top priority across the financial sector \u2014 and that probably won\u2019t change any time soon, according to Boris Khentov, SVP of operations and sustainable investing at Betterment, a U.S. financial advisory company.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cAs fiduciaries, helping our clients secure their financial futures remains our number-one objective always,\u201d says Khentov. \u201cBut for a long time sustainable investing has been sort of plagued with institutional jargon. We now see our job as advisors to make sense of this entire new world.\u201d<\/p>\n","innerContent":["\n<p>\u201cAs fiduciaries, helping our clients secure their financial futures remains our number-one objective always,\u201d says Khentov. \u201cBut for a long time sustainable investing has been sort of plagued with institutional jargon. We now see our job as advisors to make sense of this entire new world.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Here\u2019s what that new world looks like.<\/p>\n","innerContent":["\n<p>Here\u2019s what that new world looks like.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":[],"innerBlocks":[],"innerHTML":"\n<h2 class=\"wp-block-heading\" id=\"h-options-for-sustainable-investing\">Options for sustainable investing<\/h2>\n","innerContent":["\n<h2 class=\"wp-block-heading\" id=\"h-options-for-sustainable-investing\">Options for sustainable investing<\/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-divestment\"><strong>Divestment<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-divestment\"><strong>Divestment<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>If you\u2019ve heard of Fire Drill Fridays, you\u2019re probably familiar with the call for corporations, people and institutions to divest from the fossil fuel industry, as well as problematic industries like weapon manufacturing, private prisons and privately-funded migrant detention facilities.<\/p>\n","innerContent":["\n<p>If you\u2019ve heard of Fire Drill Fridays, you\u2019re probably familiar with the call for corporations, people and institutions to divest from the fossil fuel industry, as well as problematic industries like weapon manufacturing, private prisons and privately-funded migrant detention facilities.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Divestment is simply reducing your amount of shares in a company or industry. The way to do that is, of course, to sell them. This is likely going to make you feel good, but just remember that if everyone sold shares at high volumes, it would drive the price down, and profit-hungry investors could more easily get their hands on cheap securities to later profit off of.<\/p>\n","innerContent":["\n<p>Divestment is simply reducing your amount of shares in a company or industry. The way to do that is, of course, to sell them. This is likely going to make you feel good, but just remember that if everyone sold shares at high volumes, it would drive the price down, and profit-hungry investors could more easily get their hands on cheap securities to later profit off of.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Therefore, divestment is only one strategy for sustainable investing.<\/p>\n","innerContent":["\n<p>Therefore, divestment is only one strategy for sustainable investing.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-investment\"><strong>Investment<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-investment\"><strong>Investment<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>The opposite of divestment is investment. Last year, the University of Toronto made headlines for investing its $7 billion endowment in the debt of companies committed to lowering their carbon footprint.<\/p>\n","innerContent":["\n<p>The opposite of divestment is investment. Last year, the University of Toronto made headlines for investing its $7 billion endowment in the debt of companies committed to lowering their carbon footprint.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Everyday investors can also choose to invest strategically in companies or industries committed to sustainability, particularly if you prefer active over passive investing. However, cherry-picking stocks is one of the riskiest investment strategies for individuals, so it may be best to explore more passive, low-cost ways to build a diverse and socially-responsible investment (SRI) portfolio.<\/p>\n","innerContent":["\n<p>Everyday investors can also choose to invest strategically in companies or industries committed to sustainability, particularly if you prefer active over passive investing. However, cherry-picking stocks is one of the riskiest investment strategies for individuals, so it may be best to explore more passive, low-cost ways to build a diverse and socially-responsible investment (SRI) portfolio.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Out of all investment options, index funds and ETFs tend to have the lowest fees and the broadest diversification. Compared to individual stocks, these funds are made up of a mix of company securities, whether across a particular sector, size or industry. Check with a broker or advisory firm to learn what SRI fund options exist.<\/p>\n","innerContent":["\n<p>Out of all investment options, index funds and ETFs tend to have the lowest fees and the broadest diversification. Compared to individual stocks, these funds are made up of a mix of company securities, whether across a particular sector, size or industry. Check with a broker or advisory firm to learn what SRI fund options exist.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Another option is low- or no-fee mutual funds or Individual Retirement Accounts (IRAs). Aspiration has a $10 minimum to open a 100% fossil fuel-free retirement and\/or investment account. Signing up for the platform also includes a debit card which earns 0.5% cash back on purchases at sustainable businesses.<\/p>\n","innerContent":["\n<p>Another option is low- or no-fee mutual funds or Individual Retirement Accounts (IRAs). Aspiration has a $10 minimum to open a 100% fossil fuel-free retirement and\/or investment account. Signing up for the platform also includes a debit card which earns 0.5% cash back on purchases at sustainable businesses.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-choosing-an-advisor-for-sustainable-investing\"><strong>Choosing an advisor for sustainable investing<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-choosing-an-advisor-for-sustainable-investing\"><strong>Choosing an advisor for sustainable investing<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>While the Vanguards of the world will likely offer the lowest advisory fees for most SRI funds, a smaller financial advisory may be advantageous when you want to nimbly adapt to the changing landscape of sustainable investing. Larger advisories are not always set up to quickly swap out securities, especially inside the most popular flagship funds such as the Vanguard Total Stock Market ETF (VTI). (Like its name suggests, this fund seeks to track the performance of all 100% of investible U.S. stocks.)<\/p>\n","innerContent":["\n<p>While the Vanguards of the world will likely offer the lowest advisory fees for most SRI funds, a smaller financial advisory may be advantageous when you want to nimbly adapt to the changing landscape of sustainable investing. Larger advisories are not always set up to quickly swap out securities, especially inside the most popular flagship funds such as the Vanguard Total Stock Market ETF (VTI). (Like its name suggests, this fund seeks to track the performance of all 100% of investible U.S. stocks.)<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cBeing independent allows us to constantly scour the entire ecosystem and find the best [options],\u201d Khentov says about Betterment. \u201cWhen we find better ones, we swap them out. Our clients don't have to think about choosing specific securities. That's what we do as fiduciaries for them.\u201d<\/p>\n","innerContent":["\n<p>\u201cBeing independent allows us to constantly scour the entire ecosystem and find the best [options],\u201d Khentov says about Betterment. \u201cWhen we find better ones, we swap them out. Our clients don't have to think about choosing specific securities. That's what we do as fiduciaries for them.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Betterment offers three options for building SRI portfolios. However, the company is still defining and refining what \u201cSRI\u201d means to both it and its customers during this era in which sustainable investing is still \u201cnascent and open-ended,\u201d according to Khentov.<\/p>\n","innerContent":["\n<p>Betterment offers three options for building SRI portfolios. However, the company is still defining and refining what \u201cSRI\u201d means to both it and its customers during this era in which sustainable investing is still \u201cnascent and open-ended,\u201d according to Khentov.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>\u201cIt's extremely important for us when we talk to our clients that we are transparent. This is an evolving space. There are a lot of gaps in the quality of the data upon which these things are being evaluated and, quite frankly, entire categories of sustainable investing are emerging.\u201d<\/p>\n","innerContent":["\n<p>\u201cIt's extremely important for us when we talk to our clients that we are transparent. This is an evolving space. There are a lot of gaps in the quality of the data upon which these things are being evaluated and, quite frankly, entire categories of sustainable investing are emerging.\u201d<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For instance, while renewable energy investing is making news headlines amid political climate change debates, other categories of SRI metrics\u2014including a company\u2019s racial diversity, pay equity, health and safety of workers, tax compliance, and even how well a company addresses biodiversity within the supply chain\u2014are starting to sprout up.<\/p>\n","innerContent":["\n<p>For instance, while renewable energy investing is making news headlines amid political climate change debates, other categories of SRI metrics\u2014including a company\u2019s racial diversity, pay equity, health and safety of workers, tax compliance, and even how well a company addresses biodiversity within the supply chain\u2014are starting to sprout up.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-crowdfunding-and-peer-to-peer-investing-platforms\"><strong>Crowdfunding and peer-to-peer investing platforms<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-crowdfunding-and-peer-to-peer-investing-platforms\"><strong>Crowdfunding and peer-to-peer investing platforms<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>We can thank the crowdfunding space for being ahead of the game when it comes to sustainable investing. Platforms like Mainvest and FarmTogether make it easy for qualified investors to put their money into small businesses and farmland, respectively.<\/p>\n","innerContent":["\n<p>We can thank the crowdfunding space for being ahead of the game when it comes to sustainable investing. Platforms like Mainvest and FarmTogether make it easy for qualified investors to put their money into small businesses and farmland, respectively.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Investing in small businesses might not seem at first like a form of ESG investing, but putting your money back into your local community helps people in towns across the U.S. access liveable wages and support their families. Investing in a local business also helps you get a close-up view of how the company is operating. You might even know the owners, compared to putting your trust in corporate boards where transparency isn\u2019t so accessible.<\/p>\n","innerContent":["\n<p>Investing in small businesses might not seem at first like a form of ESG investing, but putting your money back into your local community helps people in towns across the U.S. access liveable wages and support their families. Investing in a local business also helps you get a close-up view of how the company is operating. You might even know the owners, compared to putting your trust in corporate boards where transparency isn\u2019t so accessible.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Double your impact by choosing small businesses committed to zero- or low-waste practices, Black-owned establishments, and companies that source ingredients locally such as Brooklyn-based ACQ Bread Company. With Mainvest, you can make a minimum investment of $100, and every quarter the small businesses share a percentage of their profits with investors. There\u2019s no fee for investors, but businesses pay a 6% fee, which ultimately could impact an investor\u2019s ROI (something to keep in mind).<\/p>\n","innerContent":["\n<p>Double your impact by choosing small businesses committed to zero- or low-waste practices, Black-owned establishments, and companies that source ingredients locally such as Brooklyn-based ACQ Bread Company. With Mainvest, you can make a minimum investment of $100, and every quarter the small businesses share a percentage of their profits with investors. There\u2019s no fee for investors, but businesses pay a 6% fee, which ultimately could impact an investor\u2019s ROI (something to keep in mind).<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Meanwhile, sustainable farmland is another growing area for ESG investing. After decades of extractive monoculture practices here in the U.S. that have stripped land of its nutrients and desecrated biodiversity, investing in sustainable farmland can help protect natural resources, better manage waste and improve soil quality. Not to mention, you can support ethical labor practices that help farm workers benefit from a living wage. Historically speaking, farmland offers consistent returns and diversification benefits as an uncorrelated asset. FarmTogether has a 1% fee for investors, which is higher than the best advisory fees for both mutual funds and index funds (they can range between roughly 0.05% and 1.5%).<\/p>\n","innerContent":["\n<p>Meanwhile, sustainable farmland is another growing area for ESG investing. After decades of extractive monoculture practices here in the U.S. that have stripped land of its nutrients and desecrated biodiversity, investing in sustainable farmland can help protect natural resources, better manage waste and improve soil quality. Not to mention, you can support ethical labor practices that help farm workers benefit from a living wage. Historically speaking, farmland offers consistent returns and diversification benefits as an uncorrelated asset. FarmTogether has a 1% fee for investors, which is higher than the best advisory fees for both mutual funds and index funds (they can range between roughly 0.05% and 1.5%).<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/heading","attrs":{"level":4},"innerBlocks":[],"innerHTML":"\n<h4 class=\"wp-block-heading\" id=\"h-shareholder-activism\"><strong>Shareholder activism<\/strong><\/h4>\n","innerContent":["\n<h4 class=\"wp-block-heading\" id=\"h-shareholder-activism\"><strong>Shareholder activism<\/strong><\/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>If you\u2019re really into the topic of sustainable investing, you might be a budding shareholder activist.<\/p>\n","innerContent":["\n<p>If you\u2019re really into the topic of sustainable investing, you might be a budding shareholder activist.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Technically, anyone who owns stock in a company is a shareholder. But to get real voting power and have a voice in how business is done, you need to own a good portion of the whole company.<\/p>\n","innerContent":["\n<p>Technically, anyone who owns stock in a company is a shareholder. But to get real voting power and have a voice in how business is done, you need to own a good portion of the whole company.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>For years, this reality has dissuaded the average investor from being active in corporate decisions. But as we\u2019ve seen during high-profile events like the ousting of three Exxon Mobil board members last June thanks to new impact investment firm, Engine No. 1, shareholder activism has become a real threat to the status quo.<\/p>\n","innerContent":["\n<p>For years, this reality has dissuaded the average investor from being active in corporate decisions. But as we\u2019ve seen during high-profile events like the ousting of three Exxon Mobil board members last June thanks to new impact investment firm, Engine No. 1, shareholder activism has become a real threat to the status quo.<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Compared to the world\u2019s largest asset managers\u2014BlackRock, Vanguard, State Street, Fidelity\u2014everyday investors are the little guys. Can enough of us band together to demand that Exxon Mobil, for instance, ramp up its commitment to renewable energy?<\/p>\n","innerContent":["\n<p>Compared to the world\u2019s largest asset managers\u2014BlackRock, Vanguard, State Street, Fidelity\u2014everyday investors are the little guys. Can enough of us band together to demand that Exxon Mobil, for instance, ramp up its commitment to renewable energy?<\/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core\/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n<p>Maybe, says Khentov: \u201cThere are new channels of engagement and driving impact that are just emerging. The whole space is so dynamic.\u201d<\/p>\n","innerContent":["\n<p>Maybe, says Khentov: \u201cThere are new channels of engagement and driving impact that are just emerging. The whole space is so dynamic.\u201d<\/p>\n"]}],"_links":{"self":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/comments?post=912"}],"version-history":[{"count":0,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/posts\/912\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media\/953"}],"wp:attachment":[{"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/media?parent=912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/categories?post=912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/tags?post=912"},{"taxonomy":"post_authors","embeddable":true,"href":"https:\/\/moneymade.io\/learn\/wp-json\/wp\/v2\/post_authors?post=912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}