By: Neerja Caprihan
According to the UN Sustainable Development Goals Report 2024 1, with just six years remaining, current progress falls far short of what is required to meet the SDGs. It’s not difficult to see why and how. We just have to look around us to see that the scale of the problem is so vast that efforts are disproportionately small in comparison and merely make a dent in the grand scheme of things. Have a look here 2 how the world stands with respect to each SDG.
As you start small and grow with grace, you find yourself abiding subconsciously by the values that you imbibed in your nascency. The need to show social responsibility has always resonated with us at Interactive Advisors. That is the reason we continue to be proud of the impressive range of our ESG offerings. Our “Socially Responsible Investing” approach to portfolio construction is designed to invest in companies that operate businesses mindfully, offering socially desirable products and services. An incorporation of ESG factors into investment decision-making has the potential of incentivizing better practices and social accountability from the companies.
The portfolios are constructed using a rules-based approach and offered at a relatively low cost. If a particular cause is closer to your heart than others, you can choose the portfolio that actually aligns with the same. You can explore more on our site.
It’s the time of the year to make resolutions. Whether it is travelling or staying put, pursuing new interests or relinquishing old habits, enjoying the company of self or many others, saving or for that matter spending like there’s no tomorrow, mindful and disciplined eating or exercising – we have all been there. Whatever our aspiration, what we really resolve towards is the commitment to do better, and be better.
Not enjoyment, and not sorrow,
Is our destined end or way;
But to act, that each to-morrow
Find us farther than to-day.
H.W.Longfellow
Given that we are all moving parts of the exciting investment machinery, socially responsible investing is one small step towards a better us, making a better tomorrow. It helps us become more socially-committed and empathetic global citizens.
The same poem 3 has another inspirational message about leaving footprints in the sand. Any day an immeasurably nobler intent than leaving footprints in carbon.
FOOTNOTES:
- https://unstats.un.org/sdgs/report/2024/
- https://unstats.un.org/sdgs/report/2024/sdg-progress-by-target/
- https://www.poetryfoundation.org/poems/44644/a-psalm-of-life
PHOTO CREDIT: https://www.shutterstock.com/g/mschuppi
VIA SHUTTERSTOCK
DISCLOSURES:
Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.
The ESG variants of the Socially Responsible Investing portfolios use an Environmental, Social and Governance (“ESG”) investment strategy. Such a strategy could limit the types and number of investment opportunities available to this portfolio, lead the portfolio to underperform a portfolio without an ESG focus or with a distinct ESG focus, and result in the portfolio investing in securities or industry sectors that underperform the market as a whole or foregoing opportunities to invest in securities that might otherwise be advantageous to invest in. Interactive Advisors could also be unsuccessful in creating a portfolio investing in stocks of companies or ETFs made up of companies that exhibit positive or favorable ESG characteristics and the ETF manager (or the provider of the index the ETF seeks to track) may not succeed in selecting issuers that exhibit positive or favorable ESG characteristics in constructing the ETFs.
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