Back in the late 70s and early 80s, social and environmental investing was just getting started.  By 1982, there were about five social and environmental mutual funds to choose from, compared to the hundreds today.  Our firm was one of the nation’s first investment managers specializing in the field.

Over the past three decades, the catalyst of growth for the social and environmental investing industry has been centered on specific themes based on current events.  In the 1980s, the South Africa divestment movement showed investors worldwide that it is possible to “vote with your dollars” and affect corporate behavior.  In 1989, the Exxon Valdez oil spill was a wake-up call to corporations and investors about environmental liability.  Since the 1990s, the environment has been the top issue for investors.  Of course, the main catalyst for growth has been competitive financial performance.

At first, environmental issues were applied to the investment process primarily as avoidance screens. Investors were looking to avoid companies with poor environmental performance.  In 1998, Portfolio 21 Investments developed one of the first approaches to positive environmental screening.  Today we have become best known for our expertise in environmental investing.

I’m very fortunate to have found a vocation with passion starting in 1982 (at an early age).  It is a gift to be surrounded by colleagues and clients who care deeply about the environment and demonstrate their concern through their actions.  It is a privilege to be celebrating my thirtieth year at Portfolio 21 Investments.

Carsten is Portfolio 21 Investments' founder and Chairman. He has 30 years of experience in socially and environmentally responsible investing.

My first SRI conference was in San Francisco in 1984. Over the past 28 years I have lost count of the SRI conferences that I’ve attended. Back in the 80s, attendance was usually about one hundred or fewer. Now these events attract several hundred from many countries. Increased interest in applying social, environmental, and governance criteria to the investment process is, in part, due to consumers and investors becoming more aware of both the risks and business opportunities of ecological limits, including climate change.

This year’s high-profile speakers include environmental leader Robert F. Kennedy, Jr., journalist David Brancaccio, author Dr. Deepak Chopra, and Nobel Laureate Professor Muhammad Yunus. I first met Muhammad Yunus in the early 80s when he was just starting Grameen Bank in Bangladesh. He was visiting Oregon and I gave him a tour of an organic farm outside of Eugene. At the time I was a director of a community loan fund to assist organic farmers. Dr. Yunus went on to become known as the father of microcredit and he has founded more than 50 companies in Bangladesh.  Just this year, Fortune Magazine named him as "one of 12 greatest entrepreneurs of our time."  Dr. Yunus will be delivering the opening keynote session and is one of 16 plenary speakers. There will be 30 sessions offered including “Think Local Food: Real Prosperity Starts Here” and “America's Low Carbon Energy Breakthrough Opportunity.”

The SRI Conference is the largest annual gathering of responsible investors and investment professionals in North America.  If you are interested in learning more, please visit http://www.SRIconference.com. Portfolio 21 Investments is a sponsor every year and I’ll be there hosting our booth.

Carsten is Portfolio 21 Investments' founder and Chairman. He has more than 25 years of experience in socially and environmentally responsible investing.

It seems every few years there has been yet another label to describe the screened approach:  values driven; values based; corporate social responsibility; responsible; socially responsive; socially conscious; environmental, social, corporate governance (ESG); triple bottom line; sustainable; green; and impact investing.  Although these terms can be defined differently, in practice they are often used interchangeably, which can certainly cause confusion.

The most common terms used today are SRI, ESG, sustainable, and impact. SRI is often associated with one’s personal values.  ESG is more often associated with financial performance derived from ESG screening factors.  Sustainable investing often emphasizes the environmental screen; however, it is also widely used interchangeably with SRI and ESG.  Impact investing is the latest term and I associate it with community investing, social venture capital, and microfinance.  Again, in practice, impact investing is sometimes used interchangeably with SRI and ESG.

The only way to really define these terms is to look closely at the underlying investments and match the investment choice with your specific screened objectives.  For example, many mutual funds that fall under the category of SRI, ESG, or sustainable, invest in oil companies, which some people may not consider a sustainable approach.

Carsten is Portfolio 21 Investments' founder and Chairman. He has more than 25 years of experience in socially and environmentally responsible investing.