Measuring Investment Impact with Worthstone

Despite its aim to improve transparency in the market, the introduction of the Sustainable Finance Disclosure Regulation (SFDR) has further muddied the waters of ESG or sustainable investing this year.

Demand for sustainable investing is growing but so too is the potential misuse of information and greenwashing of funds as a marketing tool.

Investing for a positive impact should be straightforward and unambiguous but unfortunately it isn’t.

At Everlake, we have extensive experience and skills in the sustainable investing space, but how do you, as our client, know what we’re saying is genuine?

How do we measure ourselves in the sustainable investing space and how do we audit the sustainable credentials of an investment? We need external, independent expertise, without any conflict of interests, to enable us to be confident that our clients investment is achieving genuine positive impact and broadly matching their values.

Since 2018 we have worked with Worthstone, an external auditing company, to help us gauge the impact of various investment funds.

Worthstone is paid significant fees by financial advisors, as opposed to life insurance companies or investment companies, allowing the company to operate in an impartial manner without being duty-bound to the product providers.

Operating since 2010, the company provides financial planners with independent, verifiable information and highlights the funds that are genuinely sustainable and having positive impact.

Worthstone takes a pragmatic not puritanical approach to provide clear and accurate information through impact reports. The only report of this kind that dates back to the inception of the funds, this literature is now also being produced by the fund providers, which enforces accountability.

Through the online Impact Portal and an annual Impact Investment Academy, Worthstone provides education for advisors, as well as lobbying and advocacy on behalf of financial planners.

The real point of sustainability isn’t to divide and conquer. It’s the power of a broader movement and Worthstone plays a significant role in this.