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Sustainable Investing is Good Iowa Business

Sustainable Investing

January 15, 2019

I’m proud to live in a state that has traditionally been a leader in progressive legislation. This Iowa legacy has certainly transcended these strong morals to its capital, Greater Des Moines (DSM).

What Makes DSM Great

Over the last 10 or so years, I’ve seen DSM become a hip, vibrant city that attracts new friends from all over the world. These Iowan transplants come to realize DSM harnesses a culture of diversity, acceptance and freedom intertwined with a bustling business community where anyone with a hard work ethic and strong moral compass can make a name for themselves. This in addition to our humble business leaders’ accessibility and willingness to help others is a recipe for success and makes DSM truly unique.

This cultural impact has a snowball effect, which leads to a healthier lifestyle, cleaner streets, acceptance of LGBT and minorities, environmental consciousness and stronger community. The list goes on and on. 

Iowa Values

At my workplace, we take this tradition very seriously. In true progressive Iowa form, we are one of the few (if not only) wealth management firms in DSM who invest in socially responsible portfolios. That means we only invest in businesses that have a sound record when it comes to environmental, social and corporate governance (ESG).

The flow of money changes the trajectory of the world, for better or for worse. When we invest in a diversified portfolio it’s possible our money is unknowingly supporting companies that go against our principles. But by aligning our investment portfolios with our values — Iowa values — we can remain on the right side of history. 

Have Your Cake and Eat It Too

Is economic calculation our highest standard? Does doing the right thing for our community and environment mean missing out on high returns? Historically, companies who focus on ESG metrics have outperformed their peers (both domestically and internationally) and return more value to shareholders, according to Pax World. While this theory is simple in nature, it is sophisticated in practice. It turns out you can have your cake and eat it too! Some of the brightest minds in the world understand this and have divested of all fossil fuel investments, and strictly follow ESG metrics. Larry Fink CEO of Blackrock, the largest money manager on the planet, sent a memo to all corporations suggesting they become socially responsible in addition to running a good business, or risk losing their support. Thoughtfulness is in vogue.

As your investments flow into funds that focus entirely on ESG metrics, the fund companies now become our advocates for change, our voice. Is your money making a difference? Sustainable investing is good Iowa business. 

Find more tips on starting and growing your business at sba.gov. Learn more about The Partnership’s business resources offerings, including connecting locally, globally, workplace wellness, inclusion and more on the Business Resources page.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through WCG Wealth Advisors, a Registered Investment Advisor. WCG Wealth Advisors, Disciplined Equities Management, and DE Management are separate entities from LPL Financial.