During the last decade, more investors have expressed interest in Environmental, Social, Governance (ESG) investing. So, what does ESG mean in practical terms?
It means asking questions about investments that go beyond the bottom-line financial numbers. ESG investing considers things like:
- Does a company show good stewardship of the environment?
- Does a firm promote social justice for employees, customers, and communities?
- Does leadership guide the company in a responsible and ethical way?
To be clear, we still take a data-driven approach to these areas because it’s critical to weigh the impact of each in context and to consider factors that can be measured. It’s taken a few years to reach this point, but today, we can say with confidence that the technology and analysis exists to help align these priorities with financial success.
At the heart of ESG investing lies the desire for greater transparency. Investors want to feel greater confidence in the long-term success of their investments. These factors help create a more complete picture of what someone can expect from a company, both in terms of performance and sustainability.
If you’re considering ESG, know that such an approach still supports our proven philosophy of building broadly diversified investment strategies based on sound principles and implemented efficiently.
We’re able to provide investment solutions through Sustainable and Social Core Portfolios to meet our clients needs.