Triple Bottom Line Investing

All companies have not only a financial return, but also a social and environmental return. Whether intentional or not, businesses make an impact on their customers, employees, the community, and the environment. Some companies create value while others extract value. The only question is whether we – as investors – are going to take these non-financial returns into consideration.

At IMPACTfolio®, our process involves what we call “triple bottom line” investing by seeking an environmental return, a social return, and a financial return. These three sources of return are what we refer to as our 3 P’s: Planet, People, and Profit.

The Questions We Ask

A financial plan is only as good as the questions being asked when creating it. At IMPACTfolio®, we use what we call our 3 D’s. It involves the following three types of questions: data gathering, diagnosis, and discovery. Each of these serve a unique and distinct purpose.

Data gathering questions ensure that we have the proper information to do analysis and make recommendations. Diagnostic questions bring intentionality to planning by ensuring that clients are aware of the consequences of various aspects of their financial situation and decisions they have made thus far. Discovery questions infuse a plan with meaning by facilitating conversations about what's most important to the client and then anchoring the plan according to those values.

This 3D approach to client inquiry is what really brings a financial plan to life.