A Berkshire Bank storefront branch in Boston’s Brighton neighborhood. Photo by James Sanna | Banker & Tradesman Staff
Berkshire Bank’s wealth management division has launched new socially responsible investment portfolios that the bank said would strengthen its commitment to environmental, social and governance factors.
The portfolios are part of the $5 billion “BEST Community Comeback” ESG commitment the bank announced in September. The new portfolios invest in mission-aligned companies with solid track records across ESG metrics and attributes contributing to the long-term sustainability of communities, the bank said in a statement this month.
Berkshire added that the portfolios are suitable for individual, institutional and non-profit clients. Berkshire’s wealth management team does not require clients to have a minimum amount of assets to invest, the statement said.
“We believe where you invest matters,” Kathryn Hersey, Berkshire’s director of wealth management and chief investment officer, said in the statement. “This suite of sustainable portfolios allows investors to take an active approach to investing in companies committed to advancing environmental and social progress, which in turn leads to more capital directed toward these companies and a positive ripple effect in our communities. Offering investment solutions that contribute to the long-term health of our communities is deeply aligned with our vision of being the leading socially responsible community bank in the markets we serve.”
Berkshire said increased interest from institutional and individual investors had led to record growth in socially responsible investing, with global assets rising 42 percent between 2018-2020. Berkshire said its SRI portfolios are based on an extensive due diligence process that uses multiple ESG data aggregators, proprietary research and company engagement, helping to “address the challenges of accurately measuring a portfolio’s impact and ensuring that holdings align with investor objectives.”
“We believe that by incorporating ESG factors into our research process, we are able to identify issues that impact long-term stock performance,” Hersey said. “Organizations that more effectively manage and mitigate these comprehensive risks can generate positive, sustainable returns and long-term outperformance, ultimately benefiting our clients, communities, and world.”
Berkshire added that it recently expanded its wealth management team to help strengthen the new suite of socially and environmentally responsible investment solutions, as well as to enhance financial planning and educational offerings.
