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Values-Based & Mission-Aligned Investing

Go beyond ESG screens to build a portfolio that reflects your personal mission, from faith-based investing to shareholder advocacy and community impact.

Values-Based & Mission-Aligned Investing

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Values-Based vs. ESG Investing

  • ESG investing focuses on financial risk, values-based investing starts with your beliefs
  • Values-based investors pick what matters most, then build a portfolio around those priorities
  • The two can overlap, but values-based investing is driven by mission, not risk-adjusted returns
  • Your portfolio becomes an extension of your identity, supporting aligned businesses
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Full Guide

Values-Based vs. ESG Investing

  • ESG investing focuses on financial risk, values-based investing starts with your beliefs
  • Values-based investors pick what matters most, then build a portfolio around those priorities
  • The two can overlap, but values-based investing is driven by mission, not risk-adjusted returns
  • Your portfolio becomes an extension of your identity, supporting aligned businesses

Faith-Based Investing

  • Christian funds often exclude alcohol, tobacco, gambling, and abortion-related companies
  • Shariah-compliant investing prohibits interest-bearing debt and excludes certain industries
  • Jewish values investing may emphasize fair labor, environmental care, and community impact
  • Faith-based funds have grown significantly, with dozens of options across asset classes

Shareholder Advocacy and Proxy Voting

  • As a shareholder, you can vote on corporate policies like environmental practices and pay
  • Filing shareholder resolutions puts specific issues on the ballot at annual meetings
  • Engagement means talking directly with company leaders to push for better policies
  • Sustained shareholder engagement has driven real changes in climate disclosure and diversity

Community Investing and CDFIs

  • CDFIs channel capital to underserved communities for housing, small businesses, and more
  • CDFI notes typically pay modest fixed returns while creating measurable local impact
  • You can use CDFI notes as a bond alternative, often with comparable credit quality
  • Some community investments are available through brokerages; others require direct purchase

Defining Your Personal Investment Policy

  • List the issues that matter most, environment, human rights, faith, community, etc.
  • Rank your values and decide which are hard exclusions vs. flexible preferences
  • Document your criteria in a written policy so your advisor can apply them consistently
  • Revisit your values annually, priorities may shift as your life and understanding evolve

Measuring Impact and Understanding Tradeoffs

  • Define concrete metrics like carbon intensity, board diversity, or community dollars directed
  • Use third-party tools that map your holdings to UN Sustainable Development Goals
  • Excluding industries narrows options and may cause returns to differ from broad indexes
  • Fewer options in bonds and alternatives can limit diversification in a values-aligned portfolio

Building a Values-Aligned Portfolio

  • Stocks offer the widest range of screened options, from ESG index funds to custom accounts
  • Bond options include green bonds, social bonds, CDFI notes, and screened bond funds
  • Alternatives like impact-focused private equity and sustainable real estate deepen alignment
  • Cash can be held at mission-aligned banks that reinvest deposits in community development
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