What is Sustainable Investing?
Sustainable investing allows investors to align their portfolios with their personal values. Deutsche Asset & Wealth Management and Hamburg University conducted a meta-analysis of over 2,000 empirical studies in 2015, making it the most comprehensive review of academic research on the topic of Environmental, Social and Governance standards (ESG) principals. They found that the majority of studies showed positive correlation between ESG standards and corporate financial performance.
How We Implement Sustainable Investing
The world of sustainable investing can be complex. We have done extensive research in this area and have constructed 3 balanced portfolios that consist of companies that meet the ESG criteria.
More about ESG Investing
The idea of investing in companies that are mindful of the impact their business practices has on the broader society is not new. But the term “ESG” came into wider use in recent years, as it defines a more rigorous way of evaluating companies’ standards for conducting business.
ESG now outlines a specific set of criteria that asset managers and investors can consider to identify companies that meet high standards for corporate responsibility and conscientious business practices. ESG is shorthand for:
Environmental issues that encompass how a company’s business practices affect natural resources, the climate, and other aspects of the environment.
Social standards, which cover a broad range of policies and the relationships that companies have with their employees, their customers, and the communities where they conduct business.
Governance practices, which relate to how a company manages itself and cover a range of business activities, including executive compensation, internal business controls, and the rights granted to shareholders.
ESG investing may be subject to greater volatility than ones that invest more broadly.