Responsible Investing

Gary Cole Financial Management RIA


Responsible Investing, and whether companies embrace environmental, social, and governance (ESG) issues has increased in relevance, becoming a key issue to many investors.

At GCFM, we have witnessed this growth in interest and have incorporated many ESG funds in our product list and client portfolios. As we wish to offer our clients the very best professional insight, both Gary Cole & Mike Gait completed the educational and professional requirements attaining the Responsible Investment Specialist designation (RIS).

We will further our competency through continuing education requirements, attending seminars & workshops, and attending conferences to ensure we remain at the leading edge of the industry.

Good for society. Good for portfolios.

“Responsible investing (RI) can lead to better financial returns while contributing to positive social and environmental impact.”

Many independent reports have validated the above statement but the most compelling is the 2019 report by Morgan Stanley titled, Sustainable Reality, Analyzing Risk and Returns of Sustainable Funds, which researched the performance of nearly 11,000 mutual funds from 2004 to 2018. It concluded that “there is no financial trade-off in the returns of sustainable funds compared to traditional funds and they demonstrate lower downside risk.”

So, What is Responsible Investment?

RI refers to the incorporation of environmental, social and governance factors (ESG) into the selection and management of investments.
RI has boomed in recent years as investors have recognized the opportunity for better risk-adjusted returns, while at the same time, contributing to important social and environmental issues.

Environmental, Social and Governance (ESG) Issues

Environmental, social and governance (ESG) issues are some of the most important drivers of change in the world today. They are not just societal issues; they are important economic issues with significant implications for businesses and investors.

There is no “one size fits all” when it comes to responsible investing. Responsible investments will typically use one or more of the following RI strategies:

Shareholder engagement

Gary Cole Financial Management ShareholdersUsing shareholder power to influence corporate behaviour directly. For example, filing shareholder resolutions, voting proxies, and engaging in dialogue with companies to improve their ESG performance. 


Thematic investing

Gary Cole Financial Management Thematic InvestingGathering together a collection of companies that employ a specific ESG focus, such as: 

  • Women In Leadership 
  • Clean Technology
  • Alternate/Renewable Energy 
  • Sustainability, etc.  


ESG Integration

Gary Cole Financial Management ESG2Explicitly embedding ESG issues into traditional financial analysis. With ESG integration, the portfolio manager combines ESG data together with traditional financial metrics when assessing a company’s value.


Positive and/or Negative screening

Inclusion or Exclusion of certain industries/companies based on ESG performance compared to industry peers. There are corporate sustainability leaders and laggards in all industries. A positive-screening approach would include the sustainability leaders, while a negative screening approach would exclude the laggards. Also, many RI mutual funds exclude certain industries or products such as Fossil Fuels, Tobacco, Nuclear Power, Military Weapons, Adult Entertainment, and Gaming or Gambling.  

Gary Cole Financial Management Negative ScreeningImpact investing

According to the Global Impact Investment Network, impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Examples include: microfinance, affordable housing, healthcare, education, renewable energy and more. Some impact investments would also be categorized as thematic investments.

 Gary Cole Financial Management Impact Investing


We are dedicated to Providing Financial Clarity through Service NOT Service Charges. Responsible Investing is simply one more tool to ensure we can “Secure your Financial Future,” on your terms. If you would like to incorporate RI into your portfolio, please contact either Gary or Mike and we will complete a thorough review and report how to achieve this goal.

About Gary Cole Financial Management

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