ESG investing is a type of investment approach that takes into account environmental, social, and governance factors when making investment decisions. The goal of ESG investing is to invest in companies that not only provide financial returns but also have a positive impact on society and the environment.
Environmental factors can include a company's impact on climate change, energy use, waste management, and natural resource conservation. Social factors can include a company's impact on its employees, customers, and the communities in which it operates. Governance factors can include a company's leadership structure, executive compensation, and board diversity.
In addition to offering a way for you to align your investments with your values, ESG investing also holds many benefits with the potential to earn a more solid financial return. A 2021 study completed by NYU Stern Center of Sustainable Business found that 59% of the corporations they examined showed that a focus on ESG drove positive financial performance. Long-term sustainability, lowering risk, improving financial performance due to better governance within investments, and reputation management are all benefits of placing emphasis on ESG.
Our team takes pride in our ESG and socially responsible investing (SRI) models designed to ensure that institutional clients’ investment options align with their most deeply-held values. Smart, sustainable investing is part of our investment ideology, driven by thoughtful, thorough research.