Investment Policy Statement Critical Element for Sustainable Investing

You are a private wealth manager assigned to create an Investment Policy Statement (IPS) for a 60-year-old client named Richard who has a total net worth of $3 million. Richard aims to retire in the next five years and wants his portfolio to support his lifestyle while also providing for his healthcare needs in retirement. He has a moderate risk tolerance but expresses concerns about market volatility. Additionally, Richard has specific investment beliefs that prioritize sustainable and socially responsible investing. Given these parameters, outline the most critical element that should be included in Richard's IPS to ensure it aligns with his goals and values.