Your investment choices may have an impact on the world we're all invested in.
COMPANIES THAT EMBRACE sustainable business practices have demonstrated the ability to increase revenue and decrease costs, including the cost of capital, relative to peers.1 Sustainable companies tend to be at the forefront of innovation, looking for market-based solutions to the world’s most pressing issues. As a result, companies with strong sustainability credentials are likely also better positioned for potential long-term success — with a business model that can more quickly adapt and respond to changing market conditions.
No matter what your goals are, you can seek positive change with your investments while pursuing competitive returns by exploring adding a sustainability lens.
Learn more about how you can add a sustainability lens
Working together to incorporate sustainability into your investments and strategies
To help you think about the role sustainability can play in your investments, our Chief Investment Office (CIO) has categorized the common themes that sustainable investors focus on into four pillars: People, Planet, Principles of Governance and Prosperity. These pillars were designed as a framework, so we can evaluate investments and make sustainable investing actionable.
People
Company's contribution to an engaged workforce and healthy communities
Planet
Company's contribution to climate and envirormental sustainability
Principles of Governance
Company's contribution to ethics and societal benefits
Prosperity
Company's contribution to equitable, Innovative growth
People
Company's contribution to an engaged workforce and healthy communities
Planet
Company's contribution to climate and envirormental sustainability
Principles of Governance
Company's contribution to ethics and societal benefits
Prosperity
Company's contribution to equitable, Innovative growth
The pillars provide a way for you to act on your preferences by connecting to investments and strategies that align to each sustainability theme — allowing you to invest in the future you support.
It’s easy to get started
Sustainability is integrated into our planning process. Using our four-pillar framework to focus on the areas you’d most like to influence, we integrate sustainability investment choices into our planning process. In this way, we can help you create an approach that aligns with your sustainable investing goals.
Talk to us to learn how sustainable investing can help you create a more sustainable future and invest in the momentum of a changing world.
Learn about Bank of America’s commitment to a sustainable world.
Additional resources:
1 McKinsey, Five Ways that ESG Creates Value, Nov. 2019
Important Disclosures
Opinions are as of the date of this article 04/14/2021 and are subject to change.
Investing involves risk including possible loss of principal. Past performance is no guarantee of future results.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
All recommendations must be considered in the context of an individual investor’s goals, time horizon, liquidity needs and risk tolerance. Not all recommendations will be in the best interest of all investors.
Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.
