1. What is Sustainability?
Sara Bryant, Pareen Kohlhaas, & Vincent young
SIFMA Foundation
October 29, 2018

2. Agenda 1 The History of Sustainability 2 What’s All This Jargon? 3
Sustainability in SMG 4
What’s in the Newday Score? 5
Additional Resources 6
Thank You! Any Questions!

3. The History of Sustainability
In 1987, the United Nations tasked the Brundtland Commission (formerly the World Commission on Environment and Development) with creating “a global agenda for change.” The Commission published the results of their endeavor in their report, Our Common Future1, which coined the phrase, “sustainable development” and established its widely accepted definition: “Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future.” Subsequently in 2000, UNESCO approved the Earth Charter2 and expanded the definition of sustainability to include human rights and other societal causes stating: “We must join together to bring forth a sustainable global society founded on respect for nature, universal human rights, economic justice, and a culture of peace.” That September, world leaders at the UN General Assembly committed to achieving 8 Millennium Development Goals3 (MDGs) by 2015 that formed an initial blueprint for how to meet the needs of the world’s poorest. In September 2015, the UN General Assembly renewed its commitment to sustainability and adopted 17 Sustainable Development Goals4 (SDGs) to expand this important work and recently announced an initiative5 called “SDG Impact” to help channel private investment and capital into their vision.

4. What’s All This Jargon? ESG Investing1 Socially Responsible Investing1
Impact Investing1
ESG refers to the environmental, social and governance practices of an investment that may have a material impact on the performance of that investment. The integration of ESG factors is used to enhance traditional financial analysis by identifying potential risks and opportunities beyond technical valuations. While there is an overlay of social consciousness, the main objective of ESG evaluation remains financial performance.
Socially responsible investing goes one step further than ESG by actively eliminating or selecting investments according to specific ethical guidelines. The underlying motive could be religion, personal values or political beliefs. Unlike ESG analysis which shapes valuations, SRI uses ESG factors to apply negative or positive screens on the investment universe. For clients engaged in socially responsible investing, making a profit is still important, but must be balanced against principles. The goal is to generate returns without violating one’s social conscience.
In impact or thematic investing, positive outcomes are of the utmost importance - meaning the investments need to have a positive impact, in some way. So the objective of impact investing is to help a business or organization accomplish specific goals that are beneficial to society or the environment. Investing in a non-profit dedicated to the research and development of clean energy, regardless of whether success is guaranteed, is an example.

5. Sustainability in SMG Sustainability in SMG
Teacher Support Center – “What is Sustainability?” lesson
List of Newday Sustainable Stocks1 in Resources tab
List of Newday Sustainable Stocks1 available from Enter a Stock Trade screen
Note under Account Status Messages in the Messages section of the Account Summary Analyzer showing when a team has purchased a sustainable stock
“Great News! Newday rates XXXX a sustainable company.”
Sustainability in SMG
This list is provided by our partner Newday, an investment management company that researches how well companies have adopted responsible environmental, social, and governance policies, and represents the top 100 companies identified as being “sustainable” by Newday. The list is not meant to be exclusionary.

6. What’s in the Newday Score1?
Investable Universe
Key Theme Indicators
Negative Screen
Sustainability Rating
Impact Score
The Newday investment team starts with a universe of 3,000 large, mid- size, and small companies around the globe.
Newday assigns an impact score based on the portion of revenue that is sourced directly from impactful operations.
Newday ranks each company across three pillars of overall environmental stewardship, social policy, and executive transparency.
Newday excludes companies that have major controversies such as alcohol, firearms, and tobacco or other major negative headline news.
Newday studies data provided by our research partners and identifies the most important factors that contribute and support an impact theme.

7. Additional Resources United Nations: Sustainable Development
Forbes: The Remarkable Rise of ESG
The Global Impact Investing Network
The Forum for Sustainable and Responsible Investment
SIFMA: Project Invested

8. Thank You! Any Questions?
Sara Bryant, Pareen Kohlhaas, & Vincent young
SIFMA Foundation
October 29, 2018