What is ESG Investing?
You may have heard of it but what is it? Just another needless acronym?
ESG is a way of investing with conscience but it also makes good economic sense too!
E = Environmental
This looks at how companies are making an impact on the environment – such as pollution or Energy Efficiency
S = Social
How companies support employees and deal with customers – such as equality in the workplace, and employee rights – one well known company was recently all over the media recently employing people in terrible working conditions and paying them peanuts.
G = Governance
This is all about the culture & ethics of the company. How the board of directors work, its director pay structure and its financial reporting.
Having principles makes sense, but this doesn’t have to be at the expense of a good investment return. A company that is built on strong foundations and does the right thing is much more likely to succeed long term. An increasing amount of research shows that adopting ESG principles contributes nearly 50% to company performance.
The good news is the YorWealth have an investment solution that full subscribes to the ESG principles.
Remember all investments come with investment risk and you make get back less than you put in and should be looking at medium to long term commitment.