What is Environmental, Social, and Governance (ESG) Investing?
ESG Investing (also known as Socially Responsible Investing (SRI)) is a strategy for investing that combines traditional financial analysis with an evaluation of a companies
environmental, social and corporate governance performance. Using all this information an appropriate investment is picked to help you reach your financial goals.
It is believed that picking companies with strong financial performance as well as good ESG/SRI practices within your investment portfolio will have the greatest potential to outperform the markets and mitigate risk in the long-term.
How does Socially Responsible (ESG) Investing work?
- Evaluate the companies on their financial performance
- Assess the comapnies Environmental, Social and Corporate Governance “scorecard”
- Invest in investments that score well in both areas 1 and 2
- Engage companies through shareholder action and encourage companies to make significant steps and adopt positive/sustainable business practices both now and in the future
Still the biggest myth in ESG/SRI Investing is that they don’t perform as well as traditional investments. There are many studies proving that Investing with ESG/SRI principles can increase your returns while giving you piece of mind that your investments are striving to make a difference in the world… is this something you are interested in? Contact Travis today at (604) 308-6030.