The concept of “Yield Positive” is that everyday investors can generate positive financial returns & positive impact. This double positive approach to investing is also known as sustainable investing.
The sustainable investing movement has several related terminologies that are used. Here is a clarification between relevant terminologies:
- Environmental, social, and governance (ESG) investing: data driven approach that acknowledges that a company’s carbon footprint, labor conditions, and number of women on their board may affect economic performance. The main objective of ESG investing is financial performance.
- Sustainable investing/ ethical investing / value based investing / socially responsible investing: an approach where an investor makes decisions based on ethics and financial returns. The main objective of sustainable investing is balancing profit with social responsibility. Yield Positive focuses on this category of investing.
- Impact investing: often a pro-active approach where investors seek out certain activities e.g. clean technology, high gender equality score, community development. Impact investors may be willing to take a higher investment risk, in return for a potentially high return on impact. The main objective of impact investing is generating impact.
Sustainable investing strategies differ for every investor, depending on financial goals and sustainability priorities. There is no predetermined sustainable investing recipe. Therefore, the Yield Positive platform was created to provide individual investors with different sustainable investing ingredients. Read more about the genesis of Yield Positive.
The highest priority sustainable investment themes will vary depending on investors’ values. Themes can include climate action, racial justice, community development, gender equality, gun control, and LGBTQI+ rights.
Options for sustainable investing exist within all investment types e.g. bonds, mutual funds and exchange-traded funds (ETFs), stocks. These sustainable investment products may fall within a variety of investment vehicles. These vehicles are e.g. 401(k)s, savings accounts, IRA and Roth IRAs.