Public equity is a core component of a diversified investment portfolio. Public equity investments
may offer liquidity, dividend income, and/or appreciation in value. For decades, asset owners have
worked to align their public equity investments with their values. Today, many investors in public
equity consider social and environmental issues in their investment selection processes. Given the
diversity and demonstrable track records of these strategies, families may find public equity to be
an accessible asset class as they develop impact investment portfolios.
Families can make public equity impact investments in several ways. First, they can screen their
portfolios according to ethical or environmental, social, and governance (ESG) criteria. Second,
they can invest in specific public companies whose products or services directly address social and
environmental challenges. Third, they can engage in shareholder activism to encourage companies
in which they are invested to improve ESG practices.
The purpose of this primer is to explore the different public equity impact investment strategies
that families use to achieve their overall impact and financial objectives. This document is intended
to be explanatory, and not a source of investment advice.
