When Social Responsibility Meets Your Wallet: The Rise Of 'Sustainable' Investing

When Social Responsibility Meets Your Wallet: The Rise Of 'Sustainable' Investing l Seeking Alpha

by Evan Powers, June 24, 2016

The past decade has seen a surge in interest in "socially responsible" or "sustainable" investing, but most advisors have been reluctant to recommend it or implement it in client accounts. Part of the gap has to do with wide differences in personal definitions of what "sustainable" actually means. As corporations of all types continue to respond to investor (and consumer) pressure to embrace sustainable policies, the line between "good" companies and "bad" companies may continue to blur. Funds that bill themselves as having a "sustainable" focus probably will not meet all investors' needs equally; maintaining manageable positions in carefully chosen individual stocks is a better bet.