The Sustainability Opportunity

Sustainability goes beyond reduce, reuse, and recycle. Today more than ever, investors are calling for sustainability opportunities, and markets are answering. But investing isn’t as simple as paper over plastic in the checkout line. For the investor who seeks to hold a portfolio that reflects their commitment to sustainability, Dimensional builds sustainability-focused investment strategies using scientific research and sound investment principles.

One key consideration for investors is whether they can adopt a sustainability focus and still have a good investment experience. For instance, is it possible to reduce a portfolio’s greenhouse gas emissions exposure while maintaining broad diversification and a focus on higher expected returns? Because sustainability issues range widely and vary in terms of importance and impact, investors also need to consider which sustainability criteria should guide their approach. At Dimensional, we incorporate insights from climate science to determine which environmental criteria are foundational in our sustainability strategies. Environmental science leads us to focus on climate change, and climate science identifies greenhouse gas emissions as the most significant driver of climate change. Therefore, the primary goal of Dimensional’s approach to sustainability investing is to reduce exposure to greenhouse gas emissions. By focusing on climate change and greenhouse gas emissions, we have the opportunity

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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) with its primary place of business in the state of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. References to registration with the SEC do not imply any endorsement or approval of the qualifications of the firm, nor do they imply that the firm’s representatives have attained a particular level of skill or training. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.

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