Impact Investing
Historically, investment capital has flowed predominantly toward companies and organizations run by white men and companies that prioritize short-term profit over the long-term health of people and the planet. A shift, however, is underway in the investment world. Impact investing is the practice of investing for positive social and environmental impacts plus a return on investment. Impact investments are helping heal the environment, strengthen marginalized communities, and spread better business practices — all while diversifying the recipients of investment dollars.

An ESG investing framework offers financial managers valuable data about how companies perform and behave, beyond their financials. Better information about companies’ environmental, social, and governance efforts gives everyone planning for retirement a chance to better align their retirement plan investments with their values.