Sustainable, Impact, and ESG Investing
SMART (Sustainability Metrics Applied to Risk Tolerance)® Investing Solutions
and the FACTS® SMA (Separately Managed Account)
Climate impact and greenhouse gas (GHG) emissions, energy efficiency, air and water pollution, water scarcity, biodiversity, and site restoration.
Human rights, local community impact and employment, child labour, working conditions, health and safety, and anti-corruption.
Alignment of interests, executive compensation, board independence and composition, and other shareholder rights.
We offer ESG Mutual Fund Portfolios, Fossil Fuel Free Mutual Fund Portfolios, and the FACTS® SMA, an actively managed portfolio of approximately 25 companies that we believe are most poised for price appreciation and total return. FACTS® is an ESG focused strategy with an emphasis on G, or what we call Governance 2.0. The strategy utilizes an unbiased, holistic, and quantitative analysis of the integrity, trustworthiness, and sustainability of 2,000 of the most liquid US companies, utilizing proprietary screens that have been developed over a period of 30 years.3 For more information about our services and offerings, please feel free to download our free brochure below:
ESG Investing: Values and Return
Since 2015, studies show that ESG outperformance opportunities exist in many areas of the market. Recent findings from more than 2,200 unique primary studies show that there is clear material evidence for the business case of ESG investing.4
SMART Investing Services act like your car’s GPS system to capture and filter through ESG data that is now available to investors. Recent advances in technology make it possible to utilize millions of data points to screen for the best companies across multiple industries. ESG metrics capture this data and allow investors to see what is imperative to stock performance, allowing them to make decisions in real time.
ESG analysis is the starting point and foundation of SMART Investing Services, but upon a client’s request, we can also add Socially Responsible (SRI) and Impact Investing metrics.
ESG Investing is the foundation of our SMART Investing approach, and consists of the integration of environmental, social and governance factors into the fundamental investment process. It is the process of using good information that is more readily available every day through big data and artificial intelligence (AI) to make decisions about what stocks you want to own. Regardless of a client’s level of interest in a values-based approach, investing without ESG data is like driving without using your car’s GPS. ESG Investing is the foundation of a good portfolio because it helps avoid the potential pitfalls and hazards of intangible asset risk.
Above ESG, we can also incorporate Socially Responsible Investing (SRI) screens into our process, where we can layer in a values-based approach with our clients by filtering out certain stocks or complete sectors. Examples of SRI screens include fossil fuel, fire arms, tobacco, and many others. SRI can also be used to drive investment themes such as climate change, access to clean water, gender equality, etc. SRI screens can be layered on top of ESG screens, but they are not the same thing.
Impact Investing is an investment into a company with the intention of generating a measurable environmental and/or social impact alongside a financial return. Many of the Impact investment options that we consider are linked to the UN SDGs (United Nations Sustainable Development Goals). For clients with an interest in having a measured impact on environmental and/or social issues, we offer a variety of private and alternative investment options and are continually evaluating the potential of others.
ESG, SRI and Impact Investing are three very distinct sectors, and each one builds on top of the other. If you would like to learn more about our SMART Investing Services for Individuals, please contact us for a free consultation.
Gitterman Wealth Management is a signatory to The United Nations-supported Principles for Responsible Investment (PRI) Initiative, an international network of investors working together to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their own investment decision-making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.
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Jeff Gitterman is also an Associate Producer of the feature documentary film PLANETARY, in partnership with VIMEO, Reconsider Films, and Planetary Collective.
A complimentary viewing of Planetary Collecitve’s first short film, Overview, can be seen here:
 16 Ocean Tomo, Backgrounder on Ocean Tomo 300® Patent Index (OT300): www.oceantomo.com/productsandservices/investments/indexes/ot300
FACTS® is a registered trademark of Next Decade, Inc. Gitterman Wealth Management, LLC and Next Decade, Inc. are separate and distinct entities.
 Gunnar Friede, Timo Busch & Alexander Bassen (2015) ESG and financial performance: aggregated evidence from more than 2000 empirical studies, Journal of Sustainable Finance & Investment, 5:4, 201-233, DOI: 10.1080/20430795.2015.1118917a