Secrets of Sustainable Investing

An ESG pioneer says finding good corporate citizens is the best way to make money.

- ELLEN KENNEDY

Amy Domini is founder and chair of Domini Impact Investments. She has authored several books, most recently Thoughts on People, Planet & Profit.

Kiplinger: You are a pioneer in what is often called socially responsible investing. How and why did you first come to marry your sense of moral responsibility and fairness to investing?

Domini: My first real job was as a stockbroker. I started asking clients, “Are there industries that you’d rather not invest in?” I was astonished that most people said yes. They might want to avoid tobacco companies, for instance, because their brother died of lung cancer. Over time, I saw the power in the relationship between investors and society. Do you believe that investors should be involved in this conversation? If the answer is yes, then you’re my people.

Investors today hear a lot about ESG, or environmental-, social- and governancebased investing. Is that different from socially responsible investing or valuesbased investing?

No, it is just a battle of vocabulary. I think that ESG has a precision to it that appeals more to conventional analysts on Wall Street. But we all make selections as to what to invest in based on people and the planet.

What is the best way for investors to integrate ESG into their portfolios?