Incorporating ESG and Sustainability in Your Investing Strategy
Do you want to achieve multiple goals with your investment plan? You’re not alone. Increasingly, people want to feel good about the companies they’re investing in beyond expecting a positive return financially. There’s a lot more that goes into running a company, and investors today care about what’s happening behind the scenes and the sustainability efforts of companies.
More people are conscious about supporting businesses and causes they care about with their investment strategy. One study from Aviva Investors found that 90% of investors currently consider sustainability and ESG when making real asset investments. 17% of those investors consider ESG a critical factor.
More than 500 global institutional investors were evaluated in this study, and more of them are interested in capturing ESG impacts. ESG simply refers to environmental, social, and governance investing to balance out your portfolio more ethically. In addition to financial factors you might consider in deciding which companies to invest in ESG adds a further lens to look at non-financial factors related to the company’s sustainability.