All Posts Tagged: SRI

Elite entrepreneurs expand the definition of ROI

Kristin Nelson
Wealth Management Strategy

Where we put our money speaks volumes about what’s important to us. Returns are important to all investors, but how we define returns may reveal our values.

Young, entrepreneurial professionals standing in front of a white board, talking.Are dollars and cents the only metrics we care about for a successful return on investment (ROI)?

I’d be willing to bet that if you have a personal conversation with most anyone — friend, family, colleague, or even your financial advisor — you will hear heartfelt support for making the world a better place.

That’s why it’s so encouraging to see data showing that socially responsible investing (SRI), or what we call purpose investing, is gaining momentum around the world, especially with successful entrepreneurs. Many of them are backing up talk with action when it comes to putting their money to work, according to the 2019 BNP Paribas Global Entrepreneur Report.

The report notes that at the same time more multi-millionaire entrepreneurs are using positive impact as a key business performance metric, more of them are attracted to purpose investing for the financial returns.

According to the report:

  • 40% of entrepreneurs consider positive impact a key business success metric – up from just 10% in 2016.
  • 49% of entrepreneurs are attracted to the returns generated by SRI investments – up from 18% a year ago.
  • 30% of entrepreneurs believe that sustainable investments will be high-growth in the future.

These elite entrepreneurs (with at least $10 million in investable assets) believe that in five years’ time, new commercial opportunities will emerge to help address climate change and environmental protection. Furthermore, as the report states, these entrepreneurs “feel that the future lies with firms that are acting now to tackle what will eventually be constraints on economic growth, such as inadequate social services and degrading environmental conditions.”

I’m happy that we at Bank of the West, as part of BNP Paribas, are in lockstep with these entrepreneurs around the world. We want to help finance a sustainable future with big commitments to supporting the energy transition, both through our global footprint and local organizations.

For more takeaways on the evolving definition of ROI from thousands of entrepreneurs around the globe, check out the 2019 BNP Paribas Global Entrepreneur Report (Part 1). You can also find it on our Voice of Wealth app, available at the Apple iTunes and Google Play stores.

To learn more about our approach to wealth management and how we can help you reach your financial goals and aspirations, please contact us.

All investing involves risk, including the loss of principal. When redeemed, an investment may be worth more or less than the original amount invested.

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Global Climate Action Summit highlights growth in purpose investing

Julie Davitz
Posted by Julie Davitz
Strategic Philanthropy
Older professional man conferring with a colleague or advisor (woman) while looking at a plan on a laptop.

Far from being a flash-in-the pan investment trend, SRI is an established investment strategy that is seeing continued global growth and investor interest.

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Q&A with ‘Making Money Matter’ author G. Benjamin Bingham

Steve Prostano
Family Wealth Advisors
Head shot of author G. Benjamin Bingham

I see money as the strongest leverage point for positive change. Change begins with individual conscience, asking “What’s important?”

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ESG: Keeping an eye on the governors

Steve Prostano
Family Wealth Advisors
View from hilltop with a few wind turbines, with other hilltops visible in the distance.

Investing in companies with a positive ESG reputation could be particularly important during times of economic uncertainty or social unrest.

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Balancing business and philanthropic goals may not be either-or

Kristin Nelson
Wealth Management Strategy
Vern Mangels sitting on a picnic table with a few RVs visible in the background.

Business owners and entrepreneurs do not have to sacrifice their business objectives in order to achieve their philanthropic goals.

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