Robert: One of the biggest changes from the 1970s is the terminology: from SRI to ESG [environmental, social and governance]. SRI conveyed that we were part of a social movement. We demonstrated in the streets, attended shareholder meetings and testified before state legislatures and university boards.
As social investing grew and came under attack, social investors responded by arguing the opposite: Think of us as ESG investors and not as a social movement. In other words, ESG investing is just as valid a way to make money as good value or growth investing.
That's a retreat from being a social movement but an effective advance for getting institutional business. While not as exciting as SRI was, millennial investors give this argument a warm reception. We'll see if this reception brings greater global social and environmental impact.
Paul: Sonia, what would you say to millennials considering a career in SRI?
Sonia: It's important to know the rules of the financial industry so you can influence them successfully.
Paul: Robert, any advice for young folks?
Robert: I think some formal education is required, at least undergraduate. The best people I've hired didn’t have MBAs or finance degrees. They studied history or sociology and have been very good investors with diverse backgrounds and experience.
Paul: Sonia, many people in our industry consider Robert a living legend. What's it like working with him?
Sonia: It's a tremendous opportunity and makes my job easier because I have credibility in the SRI world. More important is how Robert made his name: through a thoughtful approach to investing and total commitment to social justice movements and the people involved.
It's exciting to have the kind of mentor who goes about his work in a way different from most investment professionals, like giving the business to the employees. Those kinds of choices are pretty much unthinkable, even inside the SRI field. He's a tremendous example for us all.
Paul Ellis founded Paul Ellis Consulting to work with financial advisors who want to integrate sustainable and impact investment strategies for their clients. Robert Zevin is chairman, chief investment officer and senior portfolio manager for Zevin Asset Management LLC. Sonia Kowal is president and director of socially responsible investing for Zevin Asset Management LLC.