As we look to a new year, socially responsible investments that track factors like environmental, social, and governance principles could see greater adoption among financial advisors and investors.
“Interest has gone up tremendously in 2020,” Jeffrey Gitterman, head of Gitterman Wealth Management, an RIA that specializes in sustainable investing and provides model portfolios to other wealth management firms, told Think Advisor. “Our climate strategies are the most popular. The transition (to zero emissions) is here and not going away.”
In an annual letter to CEOs earlier in 2020, BlackRock Chairman and CEO Larry Fink said “climate change has become a defining factor in companies’ long-term prospects … But awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance.”