Latest news with #GoodInvesting
Hamilton Spectator
24-06-2025
- Business
- Hamilton Spectator
Want your money to have a positive impact? What to know about ESG investing
Investing in funds that align with your values such as supporting companies fighting climate change is much more accessible today, but experts say it takes research and diligence to determine if your money is actually working for a good cause. 'There's a whole cohort of young investors who have come to the realization that you can invest in a way that's consistent with the values that you have,' said John Bai, chief investment officer at NEI Investments. The environmental, social and governance-focused investment landscape has changed and matured over the years with way more options now on the table, Bai said. Steering away from investing in tobacco, ammunition or fossil fuel companies to those championing ESG issues can be appealing to investors but many don't know where to start — or what to look for when picking funds that support a good cause. Also, not all ESG funds are made the same. Bai said investing with an ESG focus is not much different from regular investing. Similar to any investment decision-making process, an investor would go through a laundry list of their goals, financial plan, risk tolerance, asset allocation, and exposure to stocks and bonds. But there's an extra step when investing responsibly. 'What you need to do as an investor is to write down the values that are most important to you,' Bai said. 'Then, what you need to do is read the disclosures of each fund.' A low-cost, diversified portfolio can be an entry into sustainable investments, said Tim Nash, an investment coach at Good Investing, which helps people understand sustainable investing. 'These are going to be what I call 'doing-less-evil' ETFs,' he said. 'Our goal here is to earn market rates of return while getting rid of things that don't align with our values.' Nash said it's important to see what's inside the fund and the companies it holds. He warned some ESG-branded funds could still hold equities that aren't completely aligned with an individual's values. For example, an ESG fund might exclude a tobacco company but keep Alimentation Couche-Tard Inc. despite the retailer selling tobacco at its convenience stores, Nash said. For a long time, many companies promoted themselves as being climate-friendly but that has changed. Companies have started to be more careful about their environmental and governance claims after the federal government tightened laws around sustainability disclosures last year. 'The key principle of regulations has been: Tell us what you do and do what you tell us,' Bai said. He added every sustainable fund is required to tell the investor what ESG means to them and their philosophy, and explain it in their disclosures. 'The easiest way to ensure that what you're investing in aligns with your values is to read those disclosures,' Bai said. And ask more questions. For example, question how a business that requires access to water or abundant energy approaches the issue, Bai said. He said investors need to think and ask questions like these: Does the business want the cheapest energy possible? Do they take access to the water for granted? Are they working with the local communities to make sure there's fairness in terms of human capital? Are they paying fair wages? How are you thinking about child labour and supply chain? The answers will give you a wider lens into how the fund managers think about risks and opportunities, Bai said. Experts say there's a myth about ESG investments that people often have to forgo gains. 'That's not true at all,' Nash said. 'The goal is really to track the standard benchmarks … to earn the same rate of return while doing it aligned with your values.' He said investing in ESG funds is a spectrum. A small step toward ESG-focused funds would not make an investor lose out on returns but the farther you go along the spectrum and cut more companies out of the fund, the returns could deviate — with returns a little bit higher some years while lower in others, Nash said. But the long-term goal is to earn the same rate of return and that's still achievable, he said. For instance, divestment from fossil fuels isn't really going to sacrifice huge gains as the industry makes up 3.8 per cent of the global market. If the energy sector outperforms though, investors are going to miss out on the high — ever so slightly, Nash said. Political risks can also overshadow ESG funds. An example is when the Alberta government temporarily paused approvals for renewable energy projects two years ago, or the ongoing uncertainty with U.S. President Donald Trump's penchant to favour fossil fuels over renewable energy. Nash said if investors are worried about political risk, they can opt for broader funds that focus on cleantech — a combination of energy, water, recycling and health tech, for example. An investor can consider three main approaches to ESG investing, Bai said. The first level is exclusion, he said. 'That means that these funds will just exclude bad actors in the way that they define bad actors — no cluster munition weapon providers, no tobacco, no nuclear are very common exclusions,' Bai said. Then comes the integrated approach, which looks into how the company approaches ESG issues and if they're aligned with an investor's philosophy of a company creating long-term value. A non-traditional and niche approach would include impact investments that focus on direct impacts. Those investments go into non-profits and co-ops, for instance, Nash said. 'But this is where we might be sacrificing returns, we might earn a little bit less or be taking a little more risk than we would have otherwise,' he said. This report by The Canadian Press was first published June 24, 2025.
Winnipeg Free Press
24-06-2025
- Business
- Winnipeg Free Press
Want your money to have a positive impact? What to know about ESG investing
Investing in funds that align with your values such as supporting companies fighting climate change is much more accessible today, but experts say it takes research and diligence to determine if your money is actually working for a good cause. 'There's a whole cohort of young investors who have come to the realization that you can invest in a way that's consistent with the values that you have,' said John Bai, chief investment officer at NEI Investments. The environmental, social and governance-focused investment landscape has changed and matured over the years with way more options now on the table, Bai said. Steering away from investing in tobacco, ammunition or fossil fuel companies to those championing ESG issues can be appealing to investors but many don't know where to start — or what to look for when picking funds that support a good cause. Also, not all ESG funds are made the same. Bai said investing with an ESG focus is not much different from regular investing. Similar to any investment decision-making process, an investor would go through a laundry list of their goals, financial plan, risk tolerance, asset allocation, and exposure to stocks and bonds. But there's an extra step when investing responsibly. 'What you need to do as an investor is to write down the values that are most important to you,' Bai said. 'Then, what you need to do is read the disclosures of each fund.' A low-cost, diversified portfolio can be an entry into sustainable investments, said Tim Nash, an investment coach at Good Investing, which helps people understand sustainable investing. 'These are going to be what I call 'doing-less-evil' ETFs,' he said. 'Our goal here is to earn market rates of return while getting rid of things that don't align with our values.' Nash said it's important to see what's inside the fund and the companies it holds. He warned some ESG-branded funds could still hold equities that aren't completely aligned with an individual's values. For example, an ESG fund might exclude a tobacco company but keep Alimentation Couche-Tard Inc. despite the retailer selling tobacco at its convenience stores, Nash said. For a long time, many companies promoted themselves as being climate-friendly but that has changed. Companies have started to be more careful about their environmental and governance claims after the federal government tightened laws around sustainability disclosures last year. 'The key principle of regulations has been: Tell us what you do and do what you tell us,' Bai said. He added every sustainable fund is required to tell the investor what ESG means to them and their philosophy, and explain it in their disclosures. 'The easiest way to ensure that what you're investing in aligns with your values is to read those disclosures,' Bai said. And ask more questions. For example, question how a business that requires access to water or abundant energy approaches the issue, Bai said. He said investors need to think and ask questions like these: Does the business want the cheapest energy possible? Do they take access to the water for granted? Are they working with the local communities to make sure there's fairness in terms of human capital? Are they paying fair wages? How are you thinking about child labour and supply chain? The answers will give you a wider lens into how the fund managers think about risks and opportunities, Bai said. Experts say there's a myth about ESG investments that people often have to forgo gains. 'That's not true at all,' Nash said. 'The goal is really to track the standard benchmarks … to earn the same rate of return while doing it aligned with your values.' He said investing in ESG funds is a spectrum. A small step toward ESG-focused funds would not make an investor lose out on returns but the farther you go along the spectrum and cut more companies out of the fund, the returns could deviate — with returns a little bit higher some years while lower in others, Nash said. But the long-term goal is to earn the same rate of return and that's still achievable, he said. For instance, divestment from fossil fuels isn't really going to sacrifice huge gains as the industry makes up 3.8 per cent of the global market. If the energy sector outperforms though, investors are going to miss out on the high — ever so slightly, Nash said. Political risks can also overshadow ESG funds. An example is when the Alberta government temporarily paused approvals for renewable energy projects two years ago, or the ongoing uncertainty with U.S. President Donald Trump's penchant to favour fossil fuels over renewable energy. Nash said if investors are worried about political risk, they can opt for broader funds that focus on cleantech — a combination of energy, water, recycling and health tech, for example. An investor can consider three main approaches to ESG investing, Bai said. The first level is exclusion, he said. 'That means that these funds will just exclude bad actors in the way that they define bad actors — no cluster munition weapon providers, no tobacco, no nuclear are very common exclusions,' Bai said. Then comes the integrated approach, which looks into how the company approaches ESG issues and if they're aligned with an investor's philosophy of a company creating long-term value. A non-traditional and niche approach would include impact investments that focus on direct impacts. Those investments go into non-profits and co-ops, for instance, Nash said. 'But this is where we might be sacrificing returns, we might earn a little bit less or be taking a little more risk than we would have otherwise,' he said. This report by The Canadian Press was first published June 24, 2025.
Yahoo
24-06-2025
- Business
- Yahoo
Want your money to have a positive impact? What to know about ESG investing
Investing in funds that align with your values such as supporting companies fighting climate change is much more accessible today, but experts say it takes research and diligence to determine if your money is actually working for a good cause. "There's a whole cohort of young investors who have come to the realization that you can invest in a way that's consistent with the values that you have," said John Bai, chief investment officer at NEI Investments. The environmental, social and governance-focused investment landscape has changed and matured over the years with way more options now on the table, Bai said. Steering away from investing in tobacco, ammunition or fossil fuel companies to those championing ESG issues can be appealing to investors but many don't know where to start — or what to look for when picking funds that support a good cause. Also, not all ESG funds are made the same. Bai said investing with an ESG focus is not much different from regular investing. Similar to any investment decision-making process, an investor would go through a laundry list of their goals, financial plan, risk tolerance, asset allocation, and exposure to stocks and bonds. But there's an extra step when investing responsibly. "What you need to do as an investor is to write down the values that are most important to you," Bai said. "Then, what you need to do is read the disclosures of each fund." A low-cost, diversified portfolio can be an entry into sustainable investments, said Tim Nash, an investment coach at Good Investing, which helps people understand sustainable investing. "These are going to be what I call 'doing-less-evil' ETFs," he said. "Our goal here is to earn market rates of return while getting rid of things that don't align with our values." Nash said it's important to see what's inside the fund and the companies it holds. He warned some ESG-branded funds could still hold equities that aren't completely aligned with an individual's values. For example, an ESG fund might exclude a tobacco company but keep Alimentation Couche-Tard Inc. despite the retailer selling tobacco at its convenience stores, Nash said. For a long time, many companies promoted themselves as being climate-friendly but that has changed. Companies have started to be more careful about their environmental and governance claims after the federal government tightened laws around sustainability disclosures last year. "The key principle of regulations has been: Tell us what you do and do what you tell us," Bai said. He added every sustainable fund is required to tell the investor what ESG means to them and their philosophy, and explain it in their disclosures. "The easiest way to ensure that what you're investing in aligns with your values is to read those disclosures," Bai said. And ask more questions. For example, question how a business that requires access to water or abundant energy approaches the issue, Bai said. He said investors need to think and ask questions like these: Does the business want the cheapest energy possible? Do they take access to the water for granted? Are they working with the local communities to make sure there's fairness in terms of human capital? Are they paying fair wages? How are you thinking about child labour and supply chain? The answers will give you a wider lens into how the fund managers think about risks and opportunities, Bai said. Experts say there's a myth about ESG investments that people often have to forgo gains. "That's not true at all," Nash said. "The goal is really to track the standard benchmarks … to earn the same rate of return while doing it aligned with your values." He said investing in ESG funds is a spectrum. A small step toward ESG-focused funds would not make an investor lose out on returns but the farther you go along the spectrum and cut more companies out of the fund, the returns could deviate — with returns a little bit higher some years while lower in others, Nash said. But the long-term goal is to earn the same rate of return and that's still achievable, he said. For instance, divestment from fossil fuels isn't really going to sacrifice huge gains as the industry makes up 3.8 per cent of the global market. If the energy sector outperforms though, investors are going to miss out on the high — ever so slightly, Nash said. Political risks can also overshadow ESG funds. An example is when the Alberta government temporarily paused approvals for renewable energy projects two years ago, or the ongoing uncertainty with U.S. President Donald Trump's penchant to favour fossil fuels over renewable energy. Nash said if investors are worried about political risk, they can opt for broader funds that focus on cleantech — a combination of energy, water, recycling and health tech, for example. An investor can consider three main approaches to ESG investing, Bai said. The first level is exclusion, he said. "That means that these funds will just exclude bad actors in the way that they define bad actors — no cluster munition weapon providers, no tobacco, no nuclear are very common exclusions," Bai said. Then comes the integrated approach, which looks into how the company approaches ESG issues and if they're aligned with an investor's philosophy of a company creating long-term value. A non-traditional and niche approach would include impact investments that focus on direct impacts. Those investments go into non-profits and co-ops, for instance, Nash said. "But this is where we might be sacrificing returns, we might earn a little bit less or be taking a little more risk than we would have otherwise," he said. This report by The Canadian Press was first published June 24, 2025. Ritika Dubey, The Canadian Press
National Observer
23-06-2025
- Business
- National Observer
Ethical investments can make a difference
These in-their-own-words pieces are told to Patricia Lane and co-edited with input from the interviewee for the purpose of brevity. Tim Nash is changing investment finance to support the continuation of life on Earth. As the founder and president of Good Investing, this young economist and new dad from Toronto has supported individuals, not-for-profits, charities, universities and corporations to align more than $9 billion of their money with their ethical, environmental and fiscal values. Tell us about your project. People choose their level of engagement. For the merely curious, we offer an informative podcast covering ideas, like the progress of the clean economy and the concept of green bonds. Thousands of those who wish to begin their values-aligned investment journey have opted to join our virtual classrooms. We make it easy for folks to take charge of their own investing and thus, to avoid the often significant trailing fees charged by brand-linked financial advisors. Others want one-on-one advice about options which we provide for a fee unrelated to their investment choices, so they can be confident they are getting straight-up, honest advice, free from industry bias. For those who don't want to manage their money themselves or who want values-aligned financial or estate planning, we partner with sustainable investment companies. Decision-makers in universities, pension plans, charities and not-for-profits, who are trying to align their institution's investment portfolios with their sustainability goals, benefit from understanding the data and research we provide demonstrating that fossil fuels are often not the most lucrative or resilient options when compared with the growing power of the clean economy. I also enjoy helping university student divestment groups learn about options. I like knowing I am helping make their powerful voices for change even more effective, and they will carry the knowledge they gain into their working lives. We are not brokers, advisors or money managers. We are coaches and teachers supporting people to make intentional decisions about where their money is invested. If a million Canadians can see for themselves that aligning their values with their money can be both profitable and impactful, we believe the entire system will tip to become the norm for everyone. This is already a multi-trillion-dollar trend and it is having a significant impact. I want to be part of empowering Canadians to amplify that wave. How did you get into this work? Tim Nash is changing investment finance to support the continuation of life on Earth, as the founder and president of Good Investing. My dad worked in the investment industry and discussion of financial markets was common at home. I was unhappy with the economics classes I took at university because they almost never discussed any impact other than financial return. On a student exchange in New Zealand, I had a spiritual epiphany when I encountered a 2,500-year-old tree. I understood that its secret to sustainability and that of all life on Earth is a deep connection to the Earth. I discovered in myself a deep empathy and resulting grief for all the life that has ended because humans have failed to maintain that tie. I resolved to dedicate my life to changing that. This is the way that I have chosen. What makes it hard? The main barrier is not money or even the market. It is mindsets. My ability to earn a decent living from this project is relatively recent. What keeps you awake at night? I am soon to become a father of a daughter. Will my efforts, and those of the millions of others around the globe who are working to decouple rising emissions from economic growth, succeed soon enough to leave her a livable planet? What gives you hope? The people who ask for my help are earnestly trying to do the right thing. They often feel alone, and it is a delight to introduce them to the size and scale of the existing movement they are joining. In 2009, there was $1 trillion invested in the clean economy, protecting water and growing renewable energy, green infrastructure and electrifying transportation. In 2025, that number has grown to $20 trillion. It's unstoppable. What do you see if we get this right? An economy that works for everyone, including the most vulnerable and the life on this planet on which we depend. What would you like to say to other young people? Hope is a sweater you decide to put on every day. It's a choice, but you will be warmer if you make it. Put your own oxygen mask on first. We will spend the rest of our lives contending with the wicked problems climate change brings. Promise yourself to be there for the long haul by taking care of yourself and those around you every day. Whatever your work or studies, find the places where the light shines brightest for you. It's only sustainable if it feeds you. What about older readers? Your money and the money held by the organizations you participate in, like your pension fund, not-for-profit or church, can work for your values, but if you don't pay attention, it is likely undermining them. Get some good advice and then, start making deliberate decisions to funnel it toward the common good.
Yahoo
26-03-2025
- Business
- Yahoo
How to make money ethically
As tensions rise globally, some people are becoming more conscious about where they invest their money and how they can align their financial goals with their personal values. UBC students recently called a two-day strike, demanding the university divest from companies they say are complicit in Palestinian human rights violations. There's also a backlash against those who invest in Tesla stock. Good Investing founder and president Tim Nash explains what ethical investing is.
