Sustainable Investment: Two ways to diversify portfolios for the Climate Crisis

Not-for-profits can play an important role in a diversified financial strategy

Our Head of Strategy and Communications, Jack Chellman, recently wrote about the importance of portfolio diversification in these turbulent economic times. In particular, he focuses on the overlooked role of not-for-profits as a core component of a diversified financial strategy, especially as it relates to financial planning in the context of the Climate Crisis:

“Current market solutions don’t offer investors the most effective diversification mechanisms to consider climate-specific externalities and mitigate climate risks. Solutions like ESG and impact investing are often limited in scope and impact.”

“An often-overlooked but effective avenue to diversify a climate-oriented investment strategy is incorporating an allocation to not-for-profits. Climate not-for-profits help address the limits of sustainable investing, as they directly regenerate the planet beyond the capacity of most market mechanisms. Making a small annual contribution to climate not-for-profits make it easy to exceed the climate impacts of ESG or sustainable investing.”

Read the full article below: