Earth Day comes around once a year, but investors can put their money to work to combat climate change year-round.
As more individuals come to terms with the existential threat of climate change, sustainable investing is no longer niche. It's gone mainstream, and it's a growing force in the capital markets.
An often cited 2019 survey from Morgan Stanley found that 85 percent of investors with at least $100,000 in investable assets were interested in sustainable investing.
Some 48 percent of investors with $10,000 or more invested said they were "very or somewhat" interested in sustainable investment funds, according to a 2022 Gallup poll. But only 25 percent said they'd heard "a lot or fair amount" about it, and only 10 percent said they were currently invested in sustainable funds.
Not only is familiarity with sustainable investing low, concepts like ESG can be confusing. ESG refers to "environmental, social, and governance." It's a set of standards used to evaluate companies through a social lens, but a study from Stanford University found ESG ratings can be unreliable because there isn't a standardized criteria for evaluation, information gathering is expensive, and data can be incomplete or unreliable.
Peter Krull, a partner and director of sustainable investing at Prime Capital Investment Advisors company Earth Equity Advisors, echoed those concerns.
"An ESG portfolio that reduces its exposure to ExxonMobil is less bad. One that eliminates it entirely is better. But one that replaces it with First Solar is actually sustainable," Krull told Cheddar News.
Krull recommended sustainable investors eliminate fossil fuel companies or funds that contain them from their portfolios altogether, but other sectors aren't so cut and dried. Mining operations, for example, can mine fossil fuels, but they can also mine minerals for electric vehicle batteries. As for what goes into a green portfolio, Krull recommended alternative energy companies that focus on solar, wind, and geothermal power, as well as less obvious choices like insurance companies that consider climate risk and biotech that improves health outcomes.
"I like to call traditional index investing rearview mirror investing because it's really about investing in where we've been or where the economy has been. Whereas sustainable investing is where the economy is going," Krull said.
Being a smart and sustainable investor can require a great deal of critical thinking and research, and Krull recommended tools like Fossil Free Funds and Invest Your Values to help sort through the noise.
Ultimately, investing is about generating a return. When it comes to sustainable investing, Krull also suggested that investors think long term.
"Because sustainable investing is about investing for the future, [investments are] not always going to be up, especially when value investing is in style," he said. "Over the long term, it should play out. But in short terms, just like we're dealing with right now over the last 12 to 18 months, that value has been in style, you probably will underperform a little bit."
Filing your taxes should be easy and straightforward if your documents are together — but what about if you became a new cryptocurrency or retail investor? What if you worked remotely last year, and not in the same state as your employer? What if you received a pandemic stimulus check, or are eligible for the child tax credit? Luis Rivero, CPA and Director of Tax at Taxfyle, joins Closing Bell to discuss what exactly all taxpayers need to know, whether they hold crypto investments, worked out of state, have children, and more.
Two years after the pandemic began, vaccines are widespread, but COVID-19 treatments aren't as plentiful. RedHill Biopharma is working to change that with its easy-to-take coronavirus treatments — which come in pill form and treat cases ranging from mild to severe. Guy Goldberg, Chief Business Officer at RedHill Biopharma, joins Closing Bell to discuss the company's two COVID-19 treatments in trial, pricing once the drugs are widely available, the company's latest earnings results, and more.
Christopher Wolfe, CIO at First Republic Private Wealth Management, joins Cheddar News' Closing Bell, where he says he is surprised that the first quarter was the first down period in a long time, but adds that the second quarter could be difficult with a lot of volatility expected.
Jeffrey Small, President of Arbor Financial, joins Chedar News' Closing Bell, where he breaks down why stocks closed near session lows on Wednesday and tells viewers what to expect ahead of next earnings season.
Almost every industry now uses online shopping and ordering, but some products require a different packing material, and many times, shipping products can be wasteful. TemperPack aims to solve both issues with its ClimaCell liners, which you might recognize if you have ever ordered a meal subscription kit. Brian Powers, co-founder and Chief Growth Officer at TemperPack, joins Closing Bell to discuss TemperPack's ClimaCell liners, the company's sustainability mission, its corporate customer base, and more.
Uber and Lyft drivers are cruising in Washington State, the first U.S. state to set an earnings standard for drivers for the ride-hailing companies. Governor Jay Inslee signed the new minimum pay standard into law Thursday, which also gives drivers access to perks like paid sick time and family medical leave. John Logan, Director of Labor and Employment Studies at San Francisco State University, joins Cheddar News' Closing Bell to discuss.
Carsten Koerl, CEO of Sportradar, joins Cheddar News' Closing Bell, where he explains how his company is bolstering the platforms of sports betting and streaming networks, and discusses basketball legend and Sportradar investor Michael Jordan's role in helping the company grow.
A new NFT network claims it is disrupting the art market, and is doing so by following in the footsteps of art legends Andy Warhol and Jean-Michel Basquiat. Tripsters says it is creating a new and revolutionary concept in the NFT space, by allowing users to combine two NFTs in order to create a new third NFT. Tripsters says the feature will be compatible with multiple NFT collections in the future, but the first Tripsters' airdrop will be compatible with the Bored Ape Yacht Club collection. Jayson Winer, co-founder of Tripsters, and Oskar Kowalski, a senior advisor for the startup, join Cheddar News' Closing Bell to discuss.
