Page 6 - Nebraska Report Nov Dec 2020

What is “Responsible Investing”?

by Tyler Mainquist sense of responsibility to their community, sequently avoid companies that oppose
There are many terms being used to de- whether that is local or global. There are them. This is sometimes known as ‘values-
scribe investment options that aim to deliver many subsets. based investing’; or ‘faith-based investing’
a competitive financial return while also “Sustainable Investing” most com- if values come directly from one’s faith life;
seeking specific non-financial results. The monly refers to environmental sustainability: or even “Biblically Responsible Investing”
historical keyword was “SRI” which meant ensuring that the companies owned in a (BRI) if investors trace their stated values
“Socially Responsible Investing.” The acro- portfolio have minimal detrimental impact to the Bible. This aspect is where “socially
nym has been repurposed to “Sustainable, on the natural world, or are actively work- responsible investing” really got its start:
Responsible and Impact” investing, and ing to improve it. Addressing global climate from the Quakers investing their community
you may see each of those words used on change via decreased fossil fuel extraction/ resources according to their values, and later
their own as well. For the last year, the most consumption is a key goal, as evidenced by when investors pressured companies to
popular term has been “ESG” which stands the Divestment campaign from Bill McKib- stop supporting apartheid in South Africa—
for “Environmental, Social and Governance.” ben, 350.org and others. Additional environ- the original divestment campaign. Today,
This column will help explain what the invest- mental drivers include decreasing pollution, common social goals include supporting
ment companies are trying to convey with reducing deforestation, and encouraging companies which operate with appropriate
these phrases, and future entries will help restorative agriculture practices. Some ethics, including policies to help ensure
provide additional details, benefits, chal- firms refer to the United Nations Sustainable human rights throughout their workforce,
lenges and examples. Development Goals (SDGs) to inform their supply chain, and board of directors. Most
I place “Responsible Investing” above investment choices. also avoid weapon manufacturers, tobacco
other terms in the hierarchy of descriptors. Beyond the environment, many inves- companies, and the private prison industry.
It captures an investor’s desire to use their tors want to financially support companies “Impact Investing” seeks a measurable,
financial resources in a way that reflects their that have policies, products or services
that align with their own values, and con- conclusion on page 12

Align your principal

with your principles.

Learn more about SRI investing.

Sustainable. Responsible. Impact.

402-423-4022
tmainquist@aicinvest.com
mainquistSRI.com

Tyler Mainquist is a Registered Representative and Investment Advisor Representative offering securi-
ties and investment advisory services soleyly through Ameritas Investment Corp. (AIC). Member FINRA/
SIPC, a registered broker/dealer and registered investment advisor. AIC and Central Financial Service
(CFS) are not affiliated. Additional products and services may be available through Tyler Mainquist or
CFS that are not offered through AIC. Representatives of AIC do not provide tax or legal advice. Please
consult your tax advisor or attorney regarding your circumstances.
NOVEMBER/DECEMBER 2020 NE REPORT, P. 6