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If it's Good for the Planet, It's Good for your Wallet

Updated: Jun 23, 2023

Environmental Focus


On the previous blog, "Introducing ESG Investing: The Modern Way of Investing", we discussed how investors are considering ESG to help reduce overall risk in diversifying portfolios for long-term success. ‘ESG’ refers to Environmental, Social, and Governance, which is a set of standards for a company's operations that investors use to mitigate risk and aligning funds with objectives that have ethical motivation on disclosed performance.


Today, you will learn more about the Environmental aspect of ‘ESG’ and how it is used in evaluating any environmental risk a company might face. Businesses are involved with environmental issues because they are continuously having an impact on the world and our future. Environmental issues include climate change, greenhouse gas emission, recycling, and natural water. Those environmental factors are just a few of the most visible component of ESG performance to investors, customers, and other stakeholders. Concerns rise for everyone globally because resources are having an effect and are being affected by the environment. Knowing this, it is important to select the most eco-friendly funds to invest in so we can protect the environment and promote sustainable development of the planet for future generations. ESG measures help analyze each category to select securities aiming to minimize their negative impact on the environment.


Companies are often evaluated on how they handle their attitude, operations, and actions towards environmental issues. Obtaining a good score indicates a high degree of transparency in data publicly and excellence in overall ESG performance. They must follow certain policies and practices on the environment, if not they will be exposed to financial and legal risk.




 

Units of the 529 plan investment options are municipal securities and may be subject to market value fluctuation. Before investing in a state-specific 529 plan, you should compare your own state's qualified tuition program and any state tax or other advantages it may provide.

Content, links, and some material within this website may have been created by Mofrad Financial Solutions for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management or its subsidiaries. Avantax Wealth Management is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.

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