There is an Ontario wood furniture manufacturer who had been buying their wood directly from mills from the very start without ever having any problems. They have an impeccable reputation for producing top quality furniture so sales have never been a problem.
The company grew, investors were happy and so were the workers and company executives. Eventually though, the local mill ended up having to shut down and they had to source raw materials from farther away. Rather than look for other solutions the company kept raising prices until they almost priced themselves out of business. Some investors started to bail while others pressured the company for a new approach.
The company determined that in order to survive they would have to completely reinvent itself. Their starting point was to look at what had gone wrong and then think about what could possibly go wrong in the future. They decided they would buy a mill so as not to be dependent on outside sources.
From there they acquired forest lands using proper forest management to insure a renewable source for their raw material. That led to the realization that they were spending a huge amount of money for the energy they needed for production. Here they decided an investment in renewable energy sources like wind and solar might be able to produce more energy than they need. Eventually they saw the benefits of opening their own stores to sell the end product.
Socially Responsible Investing (SRI) has been around in one form or another for at least the past 30 years. Responsible Investment is an umbrella term used to describe the broad range of approaches that incorporate environmental, social and governance (ESG) factors into the investment process.
Today in Canada, one out of every five dollars under professional management was reported to be in socially responsible forms of investment. Research suggests many institutional managers believe that companies adhering to effective ESG standards are likely to be more successfully managed and in a position to deliver more sustainable growth over time.
I would be happy to talk to you about how to incorporate responsible investing into your portfolio.
This article is supplied by Elizabeth O’Connor, an Investment Advisor with RBC Dominion Securities Inc. (Member–Canadian Investor Protection Fund). This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article.
Elizabeth O’Connor can be reached at 705-789-2100 or email@example.com
Whether you are looking for a full time, full service financial advisor or seeking expert financial advice as a second opinion, call Elizabeth. With offices in Haliburton, Huntsville and Bracebridge, Elizabeth works closely with clients in cottage country from the lakes and surrounding towns.
Elizabeth O’Connor is an Investment Advisor with RBC Dominion Securities, which is a member of the Canadian Investor Protection Fund. 705-789-2100