Responsible Investing

financial returns and a positive societal effect

Responsible Investing describes an investment approach that incorporates environmental, social and corporate governance (ESG) considerations with management of investment portfolios. Proponents of responsible investing seek to align their core social values with meeting their personal, family, or institutional investment objectives.

Clearstead Trust has experience educating clients about responsible investing and implementing these policies in portfolios. We have helped clients comply with socially responsible mandates for many years, and in recent years have advised clients on the implications of proactive responsible investing programs.

OUR Responsible Investing Spectrum

Our solutions are not one-size-fits-all. Some clients might be comfortable simply avoiding investments that are incompatible with their missions and goals. Others seek a more active approach, incorporating Market Rate Impact Investing into their strategy by investing in companies that advance their ideals.

Exclusionary Investing

Known  as “socially responsible investing,” this strategy ensures that clients will not own any investments that are incompatible with their organization’s mission and goals. Example: A religious organization not wanting to own any stocks that include nicotine.

Integration Investing

Known as “environmental, social and governance” (ESG) investing, this strategy scores companies based on how they rate from an environmental, social and governance perspective and seeks to influence standards of corporate behavior. Example: A cultural institution wanting to own stock in a particular company if it scores favorably on sustainability.

Thematic Investing

Thematic investing focuses on a particular area within ESG and tilts investments towards stocks within a desired area. Example: investing in ESG equity funds that tilt toward  clean energy or women’s inclusion.

Market Rate Impact Investing

Investing in strategies with direct ESG impacts with the intention of seeking a higher risk, higher rate of market return.  
Example: investing in a private equity fund that directly invests in companies that are advancing on environmental, social or governance causes.

OUR Responsible Investing Process

We tailor our ESG strategies to meet our client’s objectives We recognize that our foundation clients are juggling demands from multiple stakeholders as well as their own day-to-day operations. Individual, private clients may want to “tilt” their portfolios toward specific ESG investments which we can accommodate. The nature of our investment philosophy is to own high-quality companies, whether individually or with an active separate account manager, which generally achieve high ESG scores.

Find Your Trust

CLEARSTEAD TRUST IS STRUCTURED TO PUT CLIENTS’ INTERESTS FIRST THROUGH OUR FEE-ONLY ADVISORY MODEL. WE ARE INDEPENDENT AND BELIEVE THIS IS CENTRAL TO PROVIDING OBJECTIVE ADVICE TO CLIENTS.

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Clearstead Trust is a Maine chartered Trust Company and private client advisory firm that aims to build and protect clients’ wealth over time. 

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1 Union Street | Suite 302
Portland, ME 04101
207-775-7200

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