Yes.1 And the impact that you can have is growing every day. When you invest with OpenInvest, here's how it can make a difference:
Sending Signals: We love online organizing websites like Change.org. Companies now frequently - and often quickly - change their policies and practices in response to these online movements. Most large corporations now have a Corporate Social Responsibility (CSR) department whose job it is to monitor these conversations, manage brand risks, and ensure the company is a good corporate citizen. OpenInvest makes these movements even more powerful because people are not just signing petitions, but also throwing the weight of their investments behind them and putting their money where their mouths are.
Cost of Capital: When you avoid buying shares in a company, you reduce demand, which negatively impacts its share price. The share price typically directly affects executive compensation and incentives, as well as the company’s ability to attract and retain additional talent. A lower share price also means a higher cost of capital which determines how expensive it is for the company to raise additional money to fund its operations. In sum, you affect the company’s capacity to carry out its business.
Scale: OpenInvest is the first investment platform where you can track your social and environmental impact alongside your financial ones. For example, every $10k invested in a climate-friendly portfolio avoids carbon emissions equivalent to driving nearly 4k miles each year! Over the course of your lifetime, how you invest is one of the largest contributors to your carbon footprint. Visit your dashboard to see your real-time impact on everything from carbon emissions to weapons production to women in the workplace.
Moral Complicity: Even if there wasn't a direct impact to better investing, for most it simply feels wrong and hypocritical to make money from a company or practice to which you are outwardly opposed. You can have a happier, healthier life knowing your nest egg was built in alignment with the causes, philanthropies, and products you choose to support. Many also see it as a civic duty and another way to engage with and shape the world around us. It's the same sense of duty that drives us to vote and to recycle - activities with marginal individual impact but a major collective effect.
Your Shareholder Vote: When you own shares of a company, CEOs technically work for and report to you, via the board of directors, which is supposed to represent your interests. One big advantage of the way we build your portfolio is that you have direct ownership of shares, so you can vote in shareholder resolutions. This provides an amazing opportunity to directly shape company practices - everything from mandating carbon reporting and improving diversity to basic corporate governance and transparency.
And finally, you are helping to build a movement to take back control of public markets, for the benefit of yourself, the economy, and society. As data on social and environmental issues becomes more readily available; as our user base grows and we add new issues to our platform; and as we join you with other like-minded users and communities; your voice becomes magnified and your impact increases.