RETIREMENT INVESTMENTS (401K, IRAs, Pension, Annuities, etc.)
ESG investing, or “Environmental, Social, and Governance” investing, is a popular investment strategy that considers a company's environmental impact, social responsibility, and governance practices alongside traditional financial metrics. This approach allows investors to align their financial goals with their values and potentially contribute to a more sustainable and equitable world. Few are entirely carbon-free. Looking at a fund’s holdings may reveal they are heavily invested in Tech or Financial Services. It’s also possible to find female-owned or race-specific businesses, among other choices. An equity rating service (e.g., Morningstar) can show a company’s carbon-free status and holdings. Note these are only calculated every 6 months.
Green Century has a variety of well performing mutual funds with a unique, award-winning policy of influencing companies’ green practices as a shareholder. Read more.
Two other mutual funds are particularly worth your consideration. The Sphere 500 Climate Fund (SPFEX or SPFFX) excludes all fossil fuel companies and shows improved performance as a result. The Nia Impact Solutions Fund (NIAGX) focuses on six solution areas: sustainable planet, healthcare, natural and organic foods, sustainable and affordable transportation, thriving communities, and eco and affordable housing. Nia Impact Funds is an Oakland-based, woman-led company. Both of these funds are available via self-service platforms such as Schwab and Fidelity as well as financial advisors.
As You Sow works with companies and offers screening based on such climate change issues as Climate Inflation, Carbon Risk, Methane Reduction, Fossil Fuel Funding, Energy Sector Transition. It also provides scorecards of Racial Justice and Workplace Equity.
Green America also offers guidance about how to choose a financial advisor, and searching online yields many other resources. It’s important whether an advisor is compensated by the source of the investments, a percentage of your total investment, or hourly.
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