If you’re looking to invest for your future but are concerned that the assets you choose may compromise your personal values, ESG investing might be right for you.
What does ESG stand for?
The term “ESG” stands for the words Environmental, Social and Governance. In ESG investing, these three key factors are always considered alongside any potential financial returns to be gained.
ESG investing focuses on using your money as a force for good, while still enjoying a substantial return. In short, it involves investing in firms that you feel are doing right by the world and those who live in it. Examples of ESG investments might be sustainable transport companies or renewable energy enterprises.
While once a niche corner of investing, the ESG market is now a popularly sought-after commodity, mirroring the world’s renewed interest in sustainability. This means that while once, those making more ethical investments would have to accept lower earning potential, this is no longer the case.
Are you interested in ESG investing?
When considering an ethical investment, it’s important to have a clear view of your own principles. You may feel strongly about a particular area, such as environmental concerns, or you may be looking to take broader approach, will all investments in your portfolio ethically sound.
What are examples of ESG and non-ESG investments?
Firms using and developing renewable energy or sustainable technology are classic instance of ESG investing, while investments like tobacco are assets that do not fall into this category.
Are ESG investments profitable?
Due to its growing popularity and changing attitudes, studies show that ESG investments can compete with and, in some cases, outperform traditional investments. Studies also indicate that their presence in a portfolio can also reduce risk in turbulent markets.
If you’re looking for ESG investment advice in Chester and Shropshire, we can help. At Hartey Wealth Management, our expert team can craft carefully balanced portfolios that reflect your personal ethics.
Get in touch today to discuss revising your current investments or to create a new portfolio.
