Individuals are increasingly concerned about the world around us. They are expressing their views not only in their lifestyles, but also in their investment decisions. Investing with an eye toward environmental, social, and governance (ESG) criteria allows people to use their financial wealth to promote certain causes they believe in. At the same time, they their desire for an investment return, when deciding how to invest.
ESG investing has been with us for some time and has garnered growing interest in the institutional and personal investment communities. It touches on climate change, natural resource management, human rights, fair labor practices, and gender and ethnic diversity in the corporate boardroom.
In the following article that I co-wrote with two CPA/financial planner colleagues, we take an updated look at the subject and how it may fit into a well-balanced investment strategy.