“Earth. That’s here. That’s home. That’s us.…it underscores our responsibility to deal more kindly with one another, and to preserve and cherish the only home we’ve ever known.”– Carl Sagan
Humanity consumes 74% more of our planet’s resources than we replace. If everyone used the same resources as an average U.S. person, we would need five planets.Source: Global Footprint Network
We are all stakeholders on Earth. Each of us is inseparably linked to the air, the water, the soil, and all that sustains us. We are also intimately connected to each other and the generations to come. It’s these common threads that form the legacy of sustainable investing and why responsible investors both large and small have made it one of the fastest-growing trends today.
At the heart of sustainable investing is a fundamental question, What would our economy look like if we fully valued all forms of capital, including human and natural?* Answering this question is what EarthFolio is all about.*Source: Paul Hawken, Amory Lovins, and L. Hunter Lovins, Natural Capitalism: Creating the Next Industrial Revolution, 1999
EarthFolio invests exclusively in sustainable funds that screen on up to ten separate environmental, social and corporate governance (ESG) criteria. Sustainable investing is not about owning perfect companies. It’s about finding companies that rise above their peers by demonstrating consistent ethical behavior. These best-of-class behaviors don’t show up on a balance sheet, but studies* show they often have a profound influence on a company’s bottom line.
Shareholders have a right to shape the companies they own by working directly with management. In recent years, funds owned by EarthFolio have leveraged shareholder advocacy to fight hydraulic fracturing (“fracking”), disclose corporate political spending, and phase-out old-growth timber sales.
Read more about the Impact of Sustainable and Responsible Investment. (PDF)*Sources:
Best-of-Class Screening Across 10 ESG Categories
Companies that promote sustainability and ecological conservation such as recycling, low-carbon emissions, and efficient water use.
Companies that specialize in resource efficiency and clean energy solutions such as wind, solar, and geothermal.
Companies that actively hire and promote diverse workforces that include LGBT, veterans, women, and other minorities.
Companies that promote fair wages, safe working conditions, and long-term job security.
Companies that are not engaged in manufacturing firearms, ammunition, or military weapons.
Companies that do not profit from the manufacture or distribution of harmful or addictive products and services such as tobacco, alcohol, and gaming.
Companies that avoid doing business in countries which condone human rights violations or support terrorism.
Companies that avoid the inhumane treatment of animals such as in medical testing and factory farming of livestock.
Companies with strong policies and practices governing transparency, fair compensation, and open dialogue with shareholders.
Financial institutions that partner with underserved communities for affordable housing, small business loans, and micro finance.