Introducing ESG Investing: The Modern Way of Investing

What is ESG Investing?

Investors use several different strategies to build and diversify portfolios to ensure financial success. Environmental Social Governance Investing, also known as ESG or Sustainable Investing , applies non-financial factors as a part of an analysis process to identify material risk and growth opportunities. Your investing dollars can now have a positive impact for you, the society, and the environment. In the following weeks we will dive into each section of ESG, where we will further explain how applying a sustainability strategy allows you to protect yourself from bad acts, while contributing to the positive global changes with your money.

Why is it Important? The evolving market and regulatory trends are challenging businesses to demonstrate practices that are both more sustainable and socially responsible. The world is changing, therefore environmental factors include how a company’s activities impact the environment, both locally and globally. These changes will allocate the money invested into companies that share similar values and that align with where you would like to see the world to be in the future. A growing number of funds are committing to the changes as it has become increasingly popular, especially due to the demand from millennials. It is important to be familiar with the sustainable investing practices that encourage companies to reevaluate their ESG score in order to evolve and provide both social and financial long-term gains.

What are the Benefits? The benefits of ESG investing might seem restrictive due to the limited number of choices, but there is a growing number of funds that are committing towards making better choices globally. Investors are using several different strategies to build and diversify their portfolios to ensure financial success. The benefits of ESG investing include aligning your portfolio with your personal values, while supporting companies with lower carbon emissions, while pushing companies towards a more ethical labor management, and recognizing greater board diversity.

Overall, ESG investing is the most modern type of investing as different companies are willing to commit to a more sustainable and responsible portfolio by helping make the world a better place for everyone. If your goal is to make a positive impact through investing, diversification is key. Remember we are all in this together. If you are interested and would like to learn know more, please reach out to us at (213) 388-8400.