Q: How does sustainability play a role in your daily work?

A: Sustainability is the core of our business model. We are a public benefit firm that specializes in sustainability and impact investing, so we work with individuals and organizations to put together long-term financial planning for sustainable impact initiatives. Billions of dollars are being contributed to sustainable development goals, but we need 5-7 trillion dollars to fully solve the problems. So, the portfolios we put together are focused on investing in sustainable businesses in order to attain this goal. We want to divert the money going towards issues into solutions, and we believe that this is one of the most important things we can do as consumers right now.

Q: Do you think that consumer decision-making plays a large role in climate change?

A: We believe in voting with our dollars, whether it is shopping or the consumer choices we make. People don't realize that the money in their investment portfolios could be working against the environment and against sustainable development goals, and we need to stop that.

Q: I saw that Brighter Investing is Benefit Corporation certified. What does that entail?

A: Any company can get B-corp certified. It is an in-depth process that confirms that you are having a low carbon footprint in your production and services, holding your venders accountable for sustainability, and using fair practices in your everyday business. This certification validates that you're walking the talk. Research from Yale has shown that these certified companies are more likely to survive economic downturns, which proves the strength of sustainable business models.

Q: Are there B-corp certified companies in the food industry?

A: Yes, but it is more difficult for a large organization to become retroactively b-certified, because it requires lots and lots of reporting, and could change a lot of their business practices. It is much easier for a small company to get that accreditation. If these large companies make a change, they can make a really big impact. We all need to be investing in food, so we can't just boycott these companies. However, we can shift to investing most of our money into sustainable initiatives in order to incentivize the large companies to change. 

Q: How else are companies evaluated for sustainability?

A: Since the late 90s, there has been a major push to report ESG metrics, which is a measure of sustainability in business models. However, the US does not require that these be reported in the stock market. In Europe, where sustainable investing comprises 50% of total assets invested, they require companies to submit ESG reporting. ESG reporting basically gives each company a raw score and then normalizes those scores to create a nice, even distribution curve. This allows them to compare you to the other companies within your industry, for example, the food industry.

Q: Would you that the sustainability reports of different companies relay skewed data in comparison to the ESG metrics?

A: Yes. What companies put in the report is going to be a marketing version. No company would ever admit their investments in coal-fired power plants, but instead report their investments in solar, wind, and natural gas. Additionally, an individual company is not going to put a comparison of their standings to their competitors, such as with the ESG metrics. 

Q: Do the individuals and organizations that invest with Brighter Investing tend to have a strong knowledge of sustainability and prioritize it in their decision-making?

A: This is the million-dollar question! Several of our clients have that knowledge coming in, and those are the people I go after. There is a really strong community of people who are passionate about sustainability. But there are the people who invest and say, "I don't really care." We invest in companies that are highly rated in the financial side and the sustainability side. Our objective is not to sacrifice returns. The number one barrier to getting people to invest this way is the perception that you have to give up returns. Numerous studies have shown that this type of investing does not give up returns, and it has lower risk. People in the industry continue to perpetuate these myths.

Q: How are the companies that you recommend prioritizing environmental sustainability while making a profit?

A: They try not to compare their growth to the legacy economy, aka the fossil fuel driven economy. They profit while incorporating the sustainability metrics by measuring long-term growth. Sustainability requires a longer-term mindset, and they survive at a much higher rate. Essentially, the profits they make grow much higher in the longer-term than the companies that are based in fossil fuels, who profit in the short term.