Due to investing uncertainty, investors tend to compromise personal values for the sake of financial gain. This moral struggle is one that many people face. Ask yourself, have you ever invested in a company whose values you didn’t agree with. If you have, then maybe you struggle with this dilemma too. The good news is, there’s a way to benefit financially from companies that do align with your personal values.
What Is ESG
Environmental Social and Governance investing identifies companies that meet a certain grade determined by several criteria. These standards might include proper treatment of employees, and environmentally friendly work practices, transparency and much more. There are a multitude of areas of classification for ESG investing, making it easier for an investor to find companies that align with their values.
With this form of investment, you will no longer have to compromise your beliefs for a financial return. Not only is this good for your bank account, but your environment as well.
A recent study reported that 95% of millennials wanted their money invested in companies that support their values. In fact, ESG funds took in $15 billion in the first 6 months of 2020. Companies that qualify for an ESG portfolio often outperform its industry competitors. Due to the fact that these companies tend to hold themselves to a higher standard, they are less at risk of facing lawsuits from workplace mistreatment, or receive fines from irresponsible corporate practices. Keep in mind, less negative headlines means less of a negative impact on the company’s stock price.
Feel Good About Your Investments
No longer is it necessary, or good enough, to profit at the expense of the environment or by promoting unfair practices. In fact, now is the time for companies to benefit from robust ESG standards.The investors in those companies will not only enjoy the value proposition of investing in what they believe in, but also the results of doing well while doing good.
Work with the best online investment companies who also value Environmental Social Governance standards and have spent time and energy to put technology in place to find those solutions.