Here at Ellevest Private Wealth Management, we’re always looking for new ways to help our clients invest for impact. Back in 2019, we rolled out the Ellevest Intentional Impact portfolios, equity portfolios that allow clients to invest in companies that seek to make the world better for women. Then in 2020, in an effort to address the fight against systemic racism, we adjusted that strategy to more actively screen out companies that don’t meet our standards for racial justice.

But we’re not done yet. As in a recent UN report, world leaders and scientists warn that we need to act now to combat climate change. And with those dangers materializing more quickly than ever, our clients have been looking for ways to help combat this crisis through their investments. At Ellevest, we know well the power money has in pressuring companies to adopt and maintain ethical practices. So Ellevest Private Wealth Management is proud to expand its product offerings once again, with the Ellevest Climate-Conscious Impact Strategy.

Built with the help of our partners at Ethic and designed to reward genuine environmental transparency, the new Ellevest Climate-Conscious Impact Strategy is a environmentally focused public equity portfolio that gives clients a powerful way to invest for a cleaner planet — by actively screening out companies whose business practices don’t meet our standards for environmental stewardship, all while still seeking market returns.

How it works

Much like the Ellevest Intentional Impact portfolios, the Ellevest Climate-Conscious Impact Strategy is guided by different pillars — but these five are related to environmentalism — from which we developed the criteria to determine whether to include a company. They are:

1. Clean Water: Does this company promote safe and plentiful access to clean water?
2. Climate Change: Does this company promote a low-carbon economy?
3. Sustainable Agriculture: Is this company committed to building a resilient food system?
4. Pollution: Does this company promote cleaner air, land, and water?
5. Deforestation: Does this company promote sustainable stewardship of the world’s forests?

Under these five pillars, we narrow potential assets further using 13 subcategories (sub-pillars, if you will): Water, Waste, Fossil Fuel Reserves, the Fossil Fuel Industry, Risk, Biodiversity, War, Product Quality, Greenhouse Gas Emissions, Media and Advertising, Exploitative Products, Working Conditions, and Human Rights. Because of the stringent nature of these 13 subcategories, the Ellevest Climate-Conscious Impact Strategy offers those looking to invest for a greener future an accountable, transparent option.

Why these pillars matter

The effects of climate change are all around us, and they’re getting more urgent by the day. In 2019, storms, floods and other extreme weather events displaced more than 13 million people across Asia and Africa. By 2050, it’s estimated that six billion people will live in areas that suffer water scarcity for at least one month per year. In that same period, global water demand is expected to increase by 20–30%. And clean water is just one of our five pillars.

Investing in companies that have tangibly committed to environmental sustainability is also a good move from a business perspective. Of course, ​​when you exclude certain companies or industries, you’ll miss out on any returns they do post if business is strong. But while nothing’s guaranteed in investing, the data overwhelmingly shows that ESG investments (the first letter of which? Environmental) drive better financial performance over the long term, due to better risk management and downside protection. By filtering for these climate-related pillars, the Ellevest Climate-Conscious Impact Strategy seeks competitive returns while also outperforming other funds on sustainability.

Using your power to invest in the future — yours and the planet’s

We all have the power to make a difference, in the everyday decisions we make, but also in the way we invest. The time to make a change for the environment was yesterday — but by investing for impact, we can still put our resources to work to build a better future for everyone.

Think your investments could be working harder for sustainability? Reach out to your Ellevest financial advisor today to learn more about the Ellevest Climate-Conscious Impact Strategy.

Click here to contact an Ellevest financial advisor in your area.

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