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Responsible Investing Grows More Popular with Investors

Responsible investing allows you to invest in ways that align with your values without sacrificing financial performance. 

The expression “put your money where your mouth is” may be more possible than you realize. Responsible investing options allow you to invest your money in a way that aligns with your values while potentially minimizing risk. 

At PNC, responsible investing includes methods of investing in which you can choose how to invest your money based on environmental, social or governance issues, as well as financial performance. 

Although responsible investing has been around for decades, it’s gaining popularity now that there are more mainstream options for people at all different income levels and for those passionate about different causes and issues. Companies also are growing more conscious about making socially responsible decisions, providing more options for responsible investors. Some groups, such as Millennials, Generation X and non-profit organizations are particularly interested in responsible investing right now, but they’re not the only ones taking advantage of it. In 2016, responsible investment strategies accounted for $1 of every $5 being professionally managed in the United States – and the number will likely continue to grow.[1]

Getting Started with Responsible Investing

If you want to start using responsible investing strategies, you should consult a trusted advisor. 

Most responsible investing options come down to your position on four intentions:

  1. Making an Impact: targeting specific outcomes, typically in private markets
  2. Doing No Harm: aligning your values and portfolio on an exclusionary basis (screening out and avoiding certain causes)
  3. Managing Risk: using strategies focused on environmental, social or governance standards and risks
  4. Doing Good: aligning values and portfolio in an inclusionary manner (by supporting certain causes) 

Some popular “do good” factors include alternative energy, green building and sustainable water. Popular “do no harm” factors for investors are board composition, climate change, labor standards and human rights. 

 

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Responsible Investing

Responsible investing considers social, environmental and governance factors to help meet financial goals while managing risk and supporting personal beliefs or values. PNC offers a variety of responsible investing solutions to help meet investor needs, whether they want to do good, make an impact, manage risks or do no harm.

Responsible investment strategies account for more than $1 of every $5 being professionally managed in the U.S.* -- and the number will likely continue to grow.

Responsible investing has grown* 33 percent from 2014 to 2016.  

 

 

*Assets under sustainable and responsible investment strategies in the United States increased from $6.57 trillion in 2014 to $8.72 trillion in 2016. Source: US SIF Foundation

 

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“PNC Wealth Management” is a registered service mark of The PNC Financial Services Group, Inc. 

Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value. 

©2018 The PNC Financial Services Group, Inc. All rights reserved.

 


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