Larry E. Swedroe - Your Essential Guide to Sustainable Investing

Your Essential Guide to Sustainable Investing

How to Live Your Values and Achieve Your Financial Goals with ESG, SRI, and Impact Investing

Samuel C. Adams and Larry E. Swedroe

Contents

Praise for Your Essential Guide to Sustainable Investing

Larry Swedroe and his co-author Sam Adams provide an insightful guide for investors interested in the hottest investment today; namely sustainable investing (SI). Their book is not simply a this is a wonderful opportunity, but a sober look at the reality that the plethora of SI funds are not particularly comparable and, in fact, the rating services provide radically different ratings for the same funds. Having set the framework and following up with details on the nature and attributes of the SI market, they conclude with a comprehensive guide on How to Invest Sustainably (and the warning that it will take work). If this is an investment universe you have an interest in entering, Your Essential Guide to Sustainable Investing is indeed an essential book to o wn and read.

Harold Evensky, Founder, Even sky and Katz

Sustainable investing is a complex subject. The investing industry, as it always does, has made it even more so. Here is a book that spells out what the data and peer-reviewed academic evidence tell us. The truth is, we simply dont know whether ESG portfolios will outperform or underperform mainstream portfolios in the future. Ultimately, though, there are far more important things at stake. Adams and Swedroe have produced the go-to guide for anyone who wants to understand the issu es involved.

Robin Powell, Editor, The Evidence-Ba sed Investor

Demand is booming for mutual funds that specialize in ethical investinghelping you put your money into companies that support the environment, workers, and society in general. But some apparently green funds are merely green-washed, only pretending to invest ethically. How can you find investments that truly reflect your principles? This excellent book will tell you. Youll learn the nuances of social investing as well as discover your likely investment returns. Highly recommended!

Jane Bryant Quinn, Author, How to Make Your Money Last: The Indispensable Reti rement Guide

You may have noticed that theres currently a lot of buzz in the investing world about ESG and SRI. If you dont have a clue what all this buzz is about, then this book is a must-read, since Larry and Sam get down in the weeds, explaining exactly what these investing styles are and how they may or may not be right for you. This book will bring you up to speed on these latest trends and help you become a better-inform ed investor.

Mel Lindauer, Co-Author, The Bogleheads Guide to Investing and The Bogleheads Guide to Retirem ent Planning

Larry and Sam present a comprehensive view of todays ESG investing landscape. Both have a vast experience in investments and client interactions. Larry has been a prolific writer on financial topics and Sam has been a globe-trotting champion for the environment. Together they bring clarity to an evolving investment world full of acronyms, making it accessible to all intereste d investors.

Eduardo Repetto, CIO, Avant is Investors

Sustainable investing is paramount for values-driven investors; yet, it is neither well-understood nor easily implemented by many investment professionals. Sam and Larry elucidate the dynamic landscape of sustainable investing and empirically demonstrate the impact of sustainable invest ing on firm characteristics such as cost of capital, valuations, and profitability, and on the performance of stocks and bonds. Moreover, they demonstrate that ESG investors, through their impact on asset prices, generate societal benefits by rewarding investments in green technologies and the reduction of gas emissions. Finally, Sam and Larry share robust investment principles and practical suggestions for building sustainable investment programs by clearly defining investment objectives, developing asset allocation methodologies, selecting underlying investments, and actively managing investment portfolios. This book is an essential resource for investment professionals who seek to understand sustainable investing and implement sustainable investme nt programs.

Marat Molyboga, Chief Risk Officer, Director of Research at Efficient Capita l Management

Adams and Swedroe have delivered a comprehensive review of the state of sustainable investing. They cut through the jargon, which is inconsistent and confusing at best, and misleading at worst, to help investors identify strategies aligned with their financial, societal, and personal goals. The book is essential reading for anyone seeking to put their money where their values are.

Tobias Carlisle, Founder and Portfolio Manager, Acq uirers Funds

An eye-opening guide to the opportunities and consequences of sustainable investing. I admire the thorough discussion of recent developments, the crisp bottom lines, and Burton Malkiels wise Foreword. Required reading for my Duke investment strate gies course.

Ed Tower, Emeritus Professor of Economics, Duk e University

Read this book! After doing so, youll know more about Sustainable Investing than anyone you know, including your financial advisor. In Your Essential Guide to Sustainable Investing , Sam Adams and Larry E. Swedroe dive deeply, making sense of the subjects academic research while explaining how capitalism, itself, doesnt have to destroy our planet. This should be required reading for every investor and investment p rofessional.

Andrew Hallam, Bestselling Author, Balance: How to Invest and Spend for Happiness, Health and Wealth and Million aire Teacher

Sam and I were together at Dimensional Fund Advisors for a number of years, so he is well aware of my role in co-founding Dimensional and my analytical data-driven view of investment management. Sam and Larrys book reflects on the evolution of asset management and the challenges and opportunities ESG data anal ysis brings.

John Mac McQuown, Co-Founding Dimensional Director, and Co-Proprietor, Sto ne Edge Farm

Experienced financial practitioners are typically wise enough to approach financial product innovation with healthy skepticism. Sam and Larry cut through the noise of greenwashing and marketing jargon to offer a genuine roadmap investors can use today to achieve the long-term returns stakeholders require while effecting a sustainable positive impact o n the world.

Adam Butler, Chief Investment Officer, ReSolve Asse t Management

If you really want to understand the research, risks, returns, ratings, and reasons to own ESG funds this is the book to read. Evidenced-based investing information at its best!

Paul Merriman, Author, Were Talking Millions! 12 Simple Ways to Supercharge You r Retirement

Is there a choice between values and value in investing? Not always. Adams and Swedroe answer this question and many others that all investors must ask about ESG and sustainable investing. This impressive summary dispels myths and simplifies an evolving investment landscape with clear definitions and evidence. I hope many investors will read it, discover the power in the paradox, and use the principles to reclaim prosper ity for all.

Tammira Philippe, CFA, Preside nt and CEO, Bridgeway Capita l Management

As investors increasingly look to align their holdings with their ESG preferences, its important to look beyond ESG branding and evaluate whether a fund focused on environmental, social, or governance objectives meets specific, individual goals and desires. Your Essential Guide to Sustainable Investing by Sam Adams and Larry Swedroe provides key tools to help optimize this evaluation process and guide investors to their preferred destination.