Making an impact on your portfolio and the world.
Sustainable investing, an approach that integrates environmental, social and governance (ESG) criteria, is becoming a much sought-after strategy in the financial industry.
Whether implemented through ESG integration or impact investing, sustainable investing offers a growing number of options for investors interested in achieving goals beyond financial growth when building their portfolios.
Sustainable investing considers that progress toward solving global challenges such as climate change, social inequality and unfair business practices can be made by investing in companies and enterprises that promote sustainability or have sustainable business practices. This is not to imply that other forms of investing are unsustainable, rather these approaches aim to equip investors with additional information for choosing investments to help meet all of their goals.
Through sustainable investing, not only can investors aim to make a positive impact on society and the environment, they can potentially improve the risk/return characteristics of their portfolios by factoring ESG criteria into their investment decisions.
To learn more about sustainable investing, and if it’s right for your long-term financial plan, give us a call today at 973-805-3575.
Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Sustainable/Socially Responsible Investing (SRI) considers qualitative environmental, social and corporate governance, also known as ESG criteria, which may be subjective in nature. There are additional risks associated with Sustainable/Socially Responsible Investing (SRI), including limited diversification and the potential for increased volatility. There is no guarantee that SRI products or strategies will produce returns similar to traditional investments. Because SRI criteria exclude certain securities/products for non-financial reasons, investors may forego some market opportunities available to those who do not use these criteria. Investors should consult their investment professional prior to making an investment decision.