Key takeaways

• The companies you avoid in your portfolio continue their less beneficial behaviors regardless of your decision to invest.
• Thoughtful engagement with brown companies, backed by meaningful shareholder influence and clear accountability measures, can be more effective than exclusionary strategies.
• Another tactic is to support businesses developing sustainable solutions, by investing in companies developing renewable energy technologies, energy efficiency solutions and clean transportation.

As a partner at Beatrice Advisors, a multifamily office, I often see investors presume that, to move the needle on environmental impact, they must opt for private investments that wire impact into their ethos. This…