We are passionate believers in doing what is right for our clients, and the world around us. By offering ESG options, we can support you if you have a desire to use your investments to create a more fair and sustainable society.
What is ESG?
Many of us want to make a positive impact on the world that we live in. One way in which you can do that is through decisions about how your money is invested.
ESG stands for Environmental, Social and Governance and it relates to a class of investing that is also sometimes known as ‘sustainable investing.’
There are several different categories of sustainable investing including impact investing, socially responsible investing (SRI), ESG and values-based investing.
Those clients who choose to invest in ESG stocks are giving consideration to the long-term environmental, social and governance impacts of their investments when evaluating potential stocks, as well as positive returns.
E is for environmental
How a company impacts on the Earth, in both positive and negative ways.
- Climate change policies
- Greenhouse gas emissions
- Carbon footprint
- Water usage, conservation, overfishing, and waste disposal
- Usage of renewable energy
- Recycling and safe disposal practices
- Green products, technologies, and infrastructure
- Environmental benefits for employees e.g cycle-to-work programmes
S is for social
People-related aspects such as company culture and how a company treats its employees, customers and suppliers.
- Employee treatment and pay
- Employee safety policies
- Diversity and inclusion
- Ethical supply chain sourcing, such as conflict-free minerals and responsibly sourced food
- Customer service and consumer protection
- Public stance on social justice issues, as well as lobbying efforts
G is for corporate governance
How a company’s management and board relate to different stakeholders and how the business is run
- Executive compensation, bonuses, and perks
- Board diversity and structure
- Conflicts of interest
- Bribery and corruption
- Political lobbying and donations
- Tax strategy
- How well a company communicates with its shareholders
Past performance is not a guarantee of future success. The value of your investment and any income derived from it may go down as well as up and you may not get back the original amount invested.