Innovation

The founders of Natural Investments, LLC wanted to encourage other businesses to be more socially responsible. Through influencing investors to look at companies who have an ESG (environmental, social, and governance) mission, as well as aligning their investments with their personal values, they would make great changes to society for the better. What makes this investment firm stand out from others is its effort to democratize markets. Usually "impact investing" is a tool of the uber-wealthy or large institutions, so Natural Investments seeks and supports innovative opportunities that are made accessible for "retail" clients as well as those who have smaller investable amounts. This was done to increase the accessibility of investing in sustainable and ethical companies so that the high impact is not only available to the wealthy, but also to the average household investor.

This led Natural Investments to release multiple books which focus on positive and negative screening, as well as fueling the need to have our money function in the economy in ways that reflect our values. This was done as an effort to educate the public about new ways to invest that could make positive impacts on society and still make a profit.

Inspiration

Back in the 1980s, the functioning of businesses were believed to be separate from society. Businesses operated with the sole goal of profit maximization. The Natural Investments co-founders, a father-son duo, wanted to create a firm that incorporates more social responsibility because they believed that businesses do have an impact on the environment, as well as society. With this in mind, they started an investment firm dedicated to funding businesses that were self-aware of their impacts and participated in CSR (Corporate Social Responsibility). This led them to release multiple books which focus on positive and negative screening, as well as fueling the need to have our money function in the economy in ways that reflect our values. This was done as an effort to educate the public about new ways to invest that could make positive impacts on society and still make a profit.

Overall impact

Most of Natural Investments, LLC’s impact is indirect as they are allocating their client’s capital to companies or projects that are socially impactful, but Natural Investments is changing how we prioritize investments. The financial and business world typically treats the operations of a company as separate from the social and natural world, believing that business does not have an impact. However, with the recent rise in being socially impactful, the traditional and old-fashioned concept of maximum profit-driven companies is quickly proving itself to be false. Because Natural Investments, LLC is an investment company, they are not able to fully and directly see the short term impacts but are contributing to changing how the capital market supports economic development. They know they are making long-lasting effects because they are guiding their client’s investments into more sustainable and socially responsible businesses that will ultimately benefit the economy as a whole and allows clients to become impact investors.

Natural Investments, LLC was one of the first companies certified by B Corporations. Through B Corps, the company contributes to Sustainable Development Goal #17, Partnerships For the Goals, as the company is able to establish a strong network with other certified sustainable companies. They set high standards for businesses that show excellence in social and environmental performance, public transparency, and legal accountability to balance profit and purpose. By being B Corp certified, companies are taking corporate responsibility by steering away from being profit-driven to purpose-driven.

Business benefit

Sylvia Panek, financial advisor at Natural Investments, believes that the “Triple Bottom Line” is a system that helps promote not only the environment and people, but it can actually stimulate economic growth as well. One of the great business benefits that Natural Investments, LLC provides is finding private investments that are available for non-accredited people with mostly smaller amounts of investments to invest. Natural Investments, LLC understands that more work is put into allowing their clients to invest privately, and because of that, their clients make valuable impacts on ethical businesses that can help the local economy. By doing so, their clients are paving the way for cities and communities to become more sustainable (as proposed by Sustainable Development Goal #11) in the future due to investment in such businesses.

Social and environmental benefit

Irrespective of how big or small their clients are, they promote Sustainable Development Goal #4, Quality Education, by striving to educate clients that want to channel their money into charitable or environmentally targeted markets that will help people and the environment. AIF (Accredited Investment Fiduciary) advisors like Sylvia give recommendations on what companies best align with their client’s values, whether it be socially or environmentally responsible companies. They are interested in creating a better future that is more positively impactful for life on Earth.

Interview

Sylvia Panek, AIF Advisor