2020 was traumatic, taxing and draining to say the least. For millions of Americans and people all over the world, there was loss. Loss of loved ones, jobs, homes and “normalcy.” As eager as we all are to put 2020 in the past and pretend it never happened, that would be a massive, missed opportunity. We need to use 2020 and learn from it. Whether the issue was political, economic, social, climate, or racial, you name it, there was a call to action. 2021 is about following through with tangible action and progress. The investment community saw record inflows into public ESG funds throughout the chaos and uncertainty of 2020 and I believe that is a signal of what is to come. Investors are demanding action with their investment dollars like never before and authorities on the matter believe this is just the beginning.
In my dialogues with hundreds of financial advisors over the last few years, there is one common barrier to implementing ESG investing that I repeatedly hear. Starting the difficult conversations. Conversations with clients on topics that are usually considered private or personal. Coming out of 2020, there has never been a more appropriate time to discuss personal values. In fact, it may be more difficult now to dodge these topics than to have an open discussion. Not only is there an abundance of tools and resources available to help clients align their values with their investment capital, it is an easy way to start conversations that lead to building deeper, more authentic relationships with your clients for years to come.
If last year is any indication, investors will be putting their money where their values are like never before. Here at CommonGood Capital, we are passionate about facilitating relationships between innovative, impact managers and the wealth management community. As investors continue to demand action with their investment capital in 2021, we will be here to help lead the way on this journey.