09/04/2025

Evaluate if Values-based Investing is Right for Your Association

Here are five steps to consider before making the move

Values-based investing — like socially responsible investing (SRI) and Environmental, Social and Governance (ESG) investing — has gained significant traction in recent years; with its increase in popularity, many associations are deciding whether to incorporate non-financial factors into their investment decisions. Many organizations want to align operations with their values, but how do they decide if they should align their investments with those values?  

How Do We Get Started with Values-based Investing?

A systematic approach can aid in the consensus-building process, and it's important to be aware of certain trade-offs and potential implementation choices. We suggest five steps if you are contemplating values-based investing: 

1. Clearly define the organization’s values
2. Gain consensus on whether those values should be factored into investment decisions 
3. Fully understand the tradeoffs involved
4. Know the investment options available 
5. Document the process and update the organization's investment policy

To successfully implement a values-based approach, there needs to be consensus around the organization’s values. However, achieving consensus within an organization can be a difficult process. Without well-defined values, it becomes challenging to make informed decisions about investments that align with these principles. In the absence of well-defined values, we would advise against values-based investing.  

Please select this link to read the complete article from Raffa Investment Advisers.