Sustainable Investing Made Easy with GreenPortfolio: A Conversation with COO Elizabeth Landau
On this episode of Financially Naked: Stories from The Financial Gym, our host is Garrett Faulconer, a Level 3 Certified Financial Trainer, and he is joined by Elizabeth Landau, Co-Founder and COO of GreenPortfolio. GreenPortfolio's mission is to be your guide to climate-friendly financial decision-making. Every dollar you save and invest can be one of your most powerful tools to help fight climate change.
Today, we're talking about impact investing. Impact investing is investing your money in a way that not only generates financial returns but also positively impacts society and the environment. It's become super popular lately, as more and more people want to put their money where their values are.
In this episode, we'll explore the basics of impact investing, the difference between 'impact investing' and 'ESG funds,' and how GreenPortfolio can help you make decisions that align with your values.
Podcast Notes
Elizabeth is drawn to this work because climate change is personally concerning to her. She started to reflect when the pandemic hit, and everything slowed down. She wanted to pivot her professional career to reflect her personal values.
Investing in a broad term, and so is impact investing. As people become more conscious of the environment, they want to ensure their money supports companies that align with their values. It can take time to figure out where to get started.
GreenPortfolio focuses on impact, climate solutions, and emission reductions when assessing company scores. They present you with the information so you can make decisions for yourself and your finances.
Why is impact investing important?
How we save and spend money can be a powerful tool to fight climate change. Impacting investing is a way to have a long-lasting impact with your money.
When you save and invest, your money is a vote. In a way, you're supporting that company's overall business ventures.
Sustainable, impact, and ESG investing are all broad terms. They are also subjective because something important to you may not be as important to someone else.
Even if you do your due diligence, many companies out there claim to be 'green,' 'eco-conscious,' or have an ESG that includes fossil fuel companies. Some companies are trying to mislead, but it isn't always intentional because these terms are subjective.
Elizabeth believes in responsible marketing and thinks consumers deserve transparency. Intentional greenwashing is incredibly frustrating. GreenPortfilio is focused on providing that transparency.
How does GreenPortfolio work?
The platform is designed so you can link your accounts to GreenPortfolio. It will assess everything and provide a score. It shows you winners and losers with suggestions for greener alternatives if you want to make a change.
Their score is based on how companies are directly helping or harming the environment. They look at business operations, energy sourcing, and disclosure. They also track companies over time; some are changing to become more eco-conscious.
Many people care, but it can take a lot of work to do the research. There is so much information and intentional greenwashing to look out for. GreenPortfolio wants to help people make decisions by providing the best information possible. They do all the work and research, so you have a starting point to learn more.
As an individual, it can feel like we aren't moving the needle, but there is power in collective pressure. GreenPortfolio is also helping bring conscious people together so we can take collective action for a better future.
What sets GreenPortfolio apart from other companies doing similar work?
If you've looked into impact investing before, you may have heard of ESG portfolios. ESG stands for Environmental, Social, and Governance. An ESG portfolio or ESG score gives companies a rating based on a range of socially conscious standards and is generally made relative to other companies in the same industry. These ratings are based on public disclosures from the companies.
GreenPortfolio does not give ESG ratings; rather, they focus on impact investing. The main difference between ESG and impact investing is in each approach's specific goals and strategies. Impact investing aims to generate a measurable positive impact, while ESG ratings estimate a company's financial risk due to environmental and other factors.
There are ESG portfolios out there that include coal, oil, and gas companies. Most environmentally conscious folks do not want their money supporting those types of companies and are surprised when they realize it's included in their portfolios.
GreenPortfolio provides you a complete scorecard for all accounts, so you can feel empowered in making decisions that align with your values.
If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Connect with Elizabeth & GreenPortfolio
Website: GreenPortfolio
Instagram: @greenportfolio_
TikTok: @greenportfolio
YouTube: GreenPortfolio
LinkedIn: GreenPortfolio | Elizabeth Landau
Your money can be your most valuable tool to fight climate change — if you know where to put it. GreenPortfolio is your guide for climate-friendly banking and investing. Discover your money’s climate impact and make a change — whether you’re getting your first bank account or you’re a seasoned investor. It’s time to finance a future you believe in. Sign up today!
Please Note: This is for informational purposes only and not financial advice. Opinions expressed here are not those of any bank, credit card issuer, or financial institution. Please complete your own due diligence before making any financial decisions.