Editor’s note: This article is part of a continuing series in which Paul Ellis, a well-known advisor and consultant on sustainable investing strategies, interviews industry professionals on the topics of millennials and sustainable investing. What follows is an interview with two industry experts from First Affirmative Financial Network, producer of The SRI Conference: Steve Schueth, president and Laura Isanuk, business development and marketing manager.

To read the first article in the series, click here: /news/the-wise-woman-and-the-millennial-23738.html

To read the second article in the series, click here: /news/millennials-leading-the-way-in-sustainable-investing-24019.html

To read the third article in the series, click here: /news/millennials-mainstreaming-impact-investing-24487.html

To read the fourth article in the series, click here: /news/an-sri-collaboration-across-generations-and-genders-24873.html

To read the fifth article in the series, click here: /news/like-minded-people-with-purpose-and-passion-25457.html

To read the sixth article in the series, click here: /news/green-investing--all-in-the-family-26082.html

 

Paul: Steve, for almost three decades you and George Gay, your partner at First Affirmative, have organized The SRI Conference (the premier conference on sustainable, responsible impact investing) and introduced thousands of people to our industry.

Steve: That’s right. I think people who attend The SRI Conference are attracted to the concept of making money and having a positive impact with their money at the same time. As you know, this group of investors is growing.

Paul: Laura, your first professional experience with sustainable and responsible investing was at UBS when you orchestrated their lead sponsorship for the 2014 US SIF conference.

Laura: The sponsorship was a side project for the ESG group at UBS. At that time I was a graduate training analyst, but I had always wanted to work with the ESG group. I was a double major in college environmental studies and economics—and SRI synthesized my passions. I was so inspired by the conference and the world of sustainable investing that I decided to focus my career in that world. It feels like a natural progression to be at First Affirmative where everything is SRI focused and I’m not just doing it as a side project.

Paul: Steve, I first learned how to use Twitter at The SRI Conference some years ago. So I want to thank you and George for getting folks like me to consider social media as a business tool.

Steve: Some of us are early adapters. In 2014, at our 25th annual SRI Conference, we started featuring mini-TED talks by industry pioneers. Each has been very forward looking and inspiring.

Laura: Yes, social media is a huge platform for us. First Affirmative has been around for 20+ years and we have a really strong base of clients who believe in what we do. Going forward we need to be more thoughtful about how we keep them engaged while we keep growing.

We are looking at overall branding and what messages we want to highlight. For example, the First Affirmative site posts blogs that highlight our work with clients, whereas The SRI Conference site highlights what’s happening in the larger SRI/ESG industry.

We’re also focusing on education. The millennial generation has huge potential for SRI investing, but ease of entry is an issue. Our social media presence can make it easier for them to understand what we’re doing in the industry.

Paul: All the millennials I’m interviewing for this series are excited by how much they’re learning from the SRI pioneers, and all the non-millennials are saying how much they’re learning from the millennials they work with.

Steve: Right. It’s important for millennials and other new players in this space to understand that you don’t have to recreate the wheel. So much of what we do today and what we need to do going forward has already been figured out.

Paul: On the First Affirmative website under “Our Vision” you talk about aligning personal values and financial decision making and how that can encourage behavior that enhances quality of life for all. How does the First Affirmative team apply these concepts in day-to-day work?

Steve: That’s a great question, Paul. This belief statement is our way of articulating the values of the socially conscious investors we serve. The actionable corollary is doing well and doing good at the same time. We provide investment management to relatively small investors. We have a lot of client accounts under $1 million dollars. We have quite a few over a million dollars too and we would like to have more, but this statement still resonates today at the client level, where it’s an understanding of the client’s values and priorities driving portfolio design.

Paul: Laura, as a fairly new member of the team at First Affirmative, how are you applying this concept in your day-to-day interactions with other teammates and clients of the firm?

Laura: Facilitating that deeper connection to money for people creates good feelings. I think we also have more of a family office environment versus just being colleagues. This makes for a pleasurable work experience day to day.

Paul: What have been the most surprising and challenging issues you’ve encountered in your learning curve at the firm?

Laura: Two things: First, working for a company the size of First Affirmative gives me the opportunity to take something and run with it. Second is shareholder advocacy, which is now what I am most passionate about. I knew about proxy voting, but I had never been part of an organization that took all of these proxies and collectively voted towards a position. I find it fascinating that you can have an impact beyond buying shares in companies and getting a financial return. You can actually make a difference within a company’s business.

Steve: I think that through the ongoing dialogue that many of us in the SRI space have with the publically owned companies in our portfolios, we have the opportunity to positively impact the behavior of these firms. These are impact strategies we can offer to investors in the public markets, and it’s what First Affirmative does pretty well.

Paul: Laura, a lot of the millennials I know are skeptical of the positive outcomes being achieved in engaging with public companies. Can you share a story about advocacy and or proxy filing?

Laura: We’re back to education! Helping millennials understand the process by which we can vote together toward better practices will create more enthusiasm for participating. An example of a success we had in the past is with Whole Foods. We co-filed a food waste resolution that received 28 percent shareholder support, which is quite high given this was the first food waste-based resolution filed. Now we are dialoging directly with Whole Foods and anticipate significant improvement from them over time.

Steve: It’s important to realize that the vast majority of people who own stocks do not vote their proxies. When you combine your proxy with lots of other investors and there is a professional organization like First Affirmative, Calvert or Pax World leading the effort, we can have a greater impact on corporate behavior.

Paul: Well said. This is a critical concept for investors to understand about how sustainable and responsible investing works. Steve, what do the next few years in our industry look like from your perspective?

Steve: We are well positioned for growth, which is coming from increased awareness and demand. Let’s be honest. Sustainable and responsible investing is not an idea that was cooked up by Wall Street and sold to us like many financial products are. The evolution and growth of this industry that has led to today is almost totally driven by consumer demand. The large companies that have jumped into this pool in the last couple of years are here because of that.

Paul: Laura, any last words for the millennials reading this article?

Laura: Research says that 60 percent of millennials have changed jobs one-four times in the last five years. I’ve now had three jobs and the average millennial will have 15-20 in their lifetime. So it’s cool to be at a place like First Affirmative where I finally have my first dream job. I can see myself working here for a long time!

Paul Ellis founded Paul Ellis Consulting to work with financial advisors who want to integrate sustainable and impact investment strategies for their clients. Steve Schueth is president of First Affirmative Financial Network and Laura Isanuk is business development and marketing manager for First Affirmative Financial Network.