The 7 different ways of investing

What kind of investor are you?

Traditional investor

You invest to make money

You invest for financial returns and choose investments based solely on financial goals. 

Charitable giving

You have money and give it to charity

Making donations to not-for-profit organizations, enabling them to achieve their goals. Hands off, no/ low strategy, low resource intensity.

Desired outcome: Perceived positive environmental and social (E&S) impact

Strategic philanthropy

You have money and donate it strategically into a variety of solutions

Strategic donations directed toward a variety of solutions to help them achieve their philanthropic vision. Hands on, robust strategy, high resource intensity.

Desired outcome: Demonstrable positive environmental and social (E&S) impact

Social finance

Your money delivers a positive impact, but returns are potentially less than with traditional investments.

Investing with the explicit intention generating a measurable environmental and social (E&S) impact, alongside a (typically below-market) financial return.

Desired outcome: Environmental and social (E&S) impact plus some financial return

"Exclusion" investor

You invest to make financial returns, but you avoid investments that don't align with your values.

Excluding companies or industries from portfolios where they are not aligned with an investor’s values

Desired outcome: Market returns; non-underperformance

Integration investor

You invest to make money and look to sustainability factors to improve return.

Integrating environmental, social, and corporate governance (ESG) factors into traditional investment processes to improve portfolio risk / return.

Desired outcome: Competitive risk-adjusted financial returns, outperformance

Impact investor

You invest to make a positive impact and financial returns.

Investing with the intention of generating measurable environmental and social (E&S) impact alongside a financial return

Desired outcome: Environmental and social (E&S) impact plus competitive risk-adjusted returns

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