Bigger Returns

If we invest in the world we believe in and the rewards are multiplied.

The gap between rich and poor has grown rapidly, and the environment and our atmosphere have been grossly degraded in recent decades. New Nobel award-winning economic studies show that investing with such disregard for global health diminishes economic stability and our bottom lines. Impact investing on the other hand directs capital to enterprises that generate social and/or environmental benefits. According to the analysts at McKinsey & Company new business models directing capital in a more purposeful, moral way, not only help balance inequities they have comparable returns. Their findings challenge the myth that this kind of “social” investment yields weak returns that take too long to realize. To have clean energy that will protect our atmosphere we have to invest in it, which provides good returns for you and the planet.

The threat of climate change has been understood by scientists, government officials, and oil companies for four decades yet we did not see significant investment dollar until 2013. Nonprofits and faith based organiations better understood that their endowments where propping up the fossil fuel industry making much of theri work counter productive.The New York times reported on the front page when the Rockefellers, heirs to oil fortune, divested from the oil industry. These landmark shift also show a shift in investment trends that will build wealth in a restorative economy.

Since 2013 close to 900 Billion dollars have been shifted to clean energy investment. Organizations like realize that it is in many ways a numbers game. The climate-aligned bond universe has reached $1.45 trillion in issuance.

“When you divest from oil or chemicals, the starting assumption must be that it will cost you a few tiny basis points of deviation, and it’s just as likely to be positive deviation as negative.” – Jeremy Grantham, GMO

Eight sectors account for 75% of all emissions and 15% of market cap of MSCI World Index. These include airlines, auto, cement, steel, aluminum, chemicals, oil & gas, coal and utilities. By integratingg emissions data into funds & finances and their general accounting practices, we inspire companies to decarbonize and resolve technical challenges that will inevitably negatively effect thier bottom line. to not address emissions is to in many ways ignore your shareholders long term.

Our investments reflect on the world we live in. Photo by Daniel Roe