Alternative Investments
Socially Responsible Investing
Earn money while helping the world Wouldn’t it be nice if you could make an impact on an issue you hold important while also keeping yourself financially s...
November 18, 2022
Social investing
This is the umbrella term used to describe the type of investing with both economic and social or environmental goals in mind. Similar terminology includes ethical investing, sustainable and responsible investing, impact investing, and social enterprise investing. This word can be easily interchanged with other blanket terms like green, clean, or socially conscious investing.Sustainable and responsible investing
Also known as SRIs, sustainable and responsible investments are a type of investment that chooses a company for investment through a set of environmental, social, and corporate governances. The process of choosing a company consists of eliminating those that produce harmful substances, such as tobacco, or engage in harmful activities such as polluting. SRIs, however, don’t actively look for companies that are doing positive things. They are mostly concerned with not making a negative impact.Impact investing
Impact investing picks up where SRIs leave off. In impact investing, you are looking for companies that have made the efforts to make a positive impact on a social and/or environmental issue. This allows the investors to align their personal values with the investment being made. The reason impact investing is different than SRIs is that the impact on the world is intentional. These kinds of investors are actively seeking to make a positive impact using a financial mechanism. They require proof from the companies that the positive impacts are being made. Examples of impact investing include renewable energy and sustainable agriculture.Ethical investing
When an individual’s personal beliefs and values play a vital role in the investments being made, it is considered ethical investing. This makes it easy for those with strong beliefs to make a decision to benefit a specific cause or movement. An example would be a person not wanting to invest in a company that manufactures firearms.Triple bottom line investing
Triple Bottom Line (TBL) investing adheres to “The Three Pillars” before making an investment decision. Also known as “3BL” or “People, Planet, Profit,” TBL sticks to reported practices. The framework allows businesses to report on three different performances; social, environmental, and financial. The goal is to measure a company’s sustainability by requiring it to report on its impact on the world as well as its profitability to shareholders. Currently, there are no universal standards for measuring any of these factors, so companies are free to use their own method of calculations, though more and more companies are choosing standardized measuring tools such as the Global Reporting Initiative.Where we come in
If any of this confuses you, or you’re having trouble deciphering what makes each one different, let Alpen Partners International help you out. By choosing impact investing, you will be part of a movement that combats the idea that only philanthropic donations can make an impact on social and environmental issues. It also fights the stigma that market investments should only focus on financial gain. Responding to the challenges of our generation, Alpen Partners International is launching a practice focusing on impact investing. Sustainable investments have become a major theme for global investors, and our firm wants to be at the forefront of creating alternatives for our clients to have their investments reflect their values. Partnering with a leading specialist in the sustainable investments space, Alpen Partners International will start offering portfolios that are focused on the best long-term sustainable investments that are equally dedicated to seeking solutions to some of the issues we face today. While maintaining our focus on balance sheet quality and capital efficiency, the portfolios will consist of companies and organizations that have the intent to generate a measurable, beneficial, social, and environmental impact alongside their strong financial return. Through impact investing, with the help of Alpen Partners International, you can make the change you want to see in the world while also increasing the change in your pocket. All investments involve certain risks. All investments carry the potential for financial loss, including the loss of the principal amount invested. Past performance should not be viewed as an indicator of future results. Market conditions and broader economic factors can significantly impact the value of investments. Investments in international markets are subject to additional risks, such as currency exchange fluctuations, political or economic instability, and variations in accounting practices. Alternative investments, including but not limited to hedge funds, private equity, and real estate, may be illiquid, speculative, and are not suitable for all investors. The above information should be considered before making any investment decisions. All posts and publications are for your information only and are not intended as an offer, promotion, or solicitation to buy or sell any financial instrument or perform any other financial transactions. All information and opinions expressed in posts and publications reflect our current views as of the date of the publication and may be liable to change without notice.Author
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