Leading RIAs already integrate ESG data and blend the use of the global values framework on sustainable development goals into their advisory firms’ business development goals. The ways they do so are as diverse as the client portfolio strategies they recommend. And financial advisors who understand how sustainable development goals are driving ESG investing will be able to differentiate themselves with clients.
“All of our clients, institutions as well as individuals, leave discussions about the [sustainable development goals] relaxed and calm,” says Holly Ruxin, the founder of Montcalm TCR LLC, a San Francisco-based wealth management and capital markets trading firm. “You can see it in their faces and shoulders.”
Ruxin believes that the U.N. goal framework is critical to the use of existing ESG and impact product strategies, as well as to the creation of new ones: “Our process involves embedding the U.N. [goals] as immutable to all long-term, values-focused investing.” Ruxin agrees that the goals inspire investors hoping for a collaboration between economics and the social needs of civil society. Having a globally adopted framework like the development goals, and 193 member nations behind it, strengthens the case for sustainable development.
Lawrence Ford is the CEO and founder of Conscious Capital Wealth Management LLC, an RIA firm that works with clients to manage their finances and develop their dreams and wellness in every part of life. Ford says, “The global consciousness of the U.N. [sustainable development goals] is an effective way for all investors to bring more depth to the anticipated use of their capital. It’s about achieving personal financial goals and consciously contributing to the good of society.” Fossil-free portfolio strategies, which are aligned with goal No. 7 (affordable and clean energy), are an example of how Ford encourages clients to invest energy sector assets in renewable sources when appropriate for their risk tolerance.
A keyword Google search for “UN SDGs” generates as many hits for articles, blogs and white papers as the keyword search for “ESG” does these days. Advisors should stay tuned and blend the client discussion of ESG data with the sustainable development goals before their competitors do.
PAUL ELLIS is owner of Paul Ellis Consulting, which offers sustainable, impact and ESG services.
He is a speaker at the 4th Annual Invest In Women conference, being held April 29-May 2 in Houston. Turn to page 59 to learn more about the conference.