Impact Investing

Impact Investing drives social and environmental progress through investments, while screening for risk and creating competitive returns.

Impact investing includes:

Investing in companies that will financially benefit because of their positive business policies and procedures in areas of Environment, Social/ Human Impact, and Corporate Governance.  This is often referred to as ESG integration.

Divesting from companies that carry considerable risk due to unsustainable business models or industry.  Divesting may also include screening out companies that are not in line with a client's personal values.  This is often referred to as exclusionary or negative screening.

Lending capital to specific under-served communities.  This is often called community investing.

Many of these techniques are often paired with shareholder engagement (also called advocacy or activism).  Shareholder engagement uses proxy voting or discussions with corporate management to encourage corporations to make more sustainable environmental, social, and governmental decisions in their business practices.

Common Terms and Definitions

These frequently used terms are often interchangeable and all use some or all of the techniques described above.  

  • Impact Investing - This can be a general term but it is also often used to describe very local or targeted investing, also known as community investing. Read more about this common term.

  • SRI (Socially Responsible Investing or Sustainable, Responsible, & Impact Investing) - Socially Responsible Investing was one of the first widely adopted names of this type of investing. It is often associated with divestment and engagement but can include all four techniques referenced above. Sustainable, Responsible, & Impact investing keeps the acronym but uses wording more specifically inclusive of the types of techniques used. Read more about this common term.

  • ESG (Environmental, Social, and Governance) Factor Investing - ESG refers to the social, environmental, and governance metrics used to evaluate companies that may provide long term financial benefits. Read more about this common term.

  • Sustainable Investing - This is a general term.

  • Green Investing - Often indicates a focus on environmental concerns above other factors.

  • Values Based Investing - Often indicates tailoring of investments to the clients unique values. This term is also used for investing tailored to clients' religious values.

  • Mission Driven Investing - Often in reference to organizations and institutions aligning their investments with the mission and values of the organization.

RINA Wealth Management Services LLC is a Registered Investment Advisor in the state of California. The advisor may not transact business in states where it is not appropriately registered or exempt from registration. Individualized responses to persons that involve either the effecting of transactions in securities or the rendering of personalized investment advice for compensation will not be made without registration or exemption.

Advisory Services offered through RINA Wealth Management Services LLC

Financial Advisors do not provide specific tax/legal advice. This information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation.

Separate from the financial plan and our role as a financial advisor, we may recommend the purchase of specific investment or insurance products. These product recommendations may not be part of the financial plan and you are under no obligation to follow them.

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