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What is ESG Investing?

ESG stands for environmental, social and governance and ESG investing is where people put their money to work in companies that have a positive net impact on the environment and society, led by a management team that aims to achieve these goals by better corporate governance.

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“Responsible investing is about ‘doing the right thing’, encouraging sustainability and contributing to positive, lasting change.”

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What questions might an ESG investor ask when evaluating companies?


Environmental

How does a company manage its environmental impact?

How much progress has it made in utilising renewable energy sources?

Is it attempting to minimise its carbon footprint?

How does it handle air or water pollution arising from its operations?

What is its attitude toward climate change?

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Social

How does the company improve its social impact?

Does it offer fair levels of pay for employees?

What are its policies regarding LGBTQ+ equality, racial diversity, and hiring practices?

How does a company advocate for social good in the wider world, beyond its business?

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Governance

How do the management and the board of directors address the interests of the company’s employees, shareholders and customers?

Is executive pay balanced compared to pay for other employees?

How do the company’s board and management drive positive change?

Does the board foster diversity in leadership?

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Why invest in ESG?
Investing this way – in line with environmental, social and governance guidelines – is one of the most powerful things an individual can do to steer the world back in the right direction. Before it is too late.

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“It is now widely acknowledged that businesses are more likely to outperform over the longer term if they take account of environmental, social and governance issues.”

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Is ESG investing right for you?
A good starting point is to ask yourself:

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How strongly do you feel about environmental factors such as climate change, and a company’s environmental footprint and activities?

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How important is it to you to invest in companies that take environmental, social and governance – or ‘ESG’ factors – into account?

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If you feel strongly about it or feel it is important to you please get in touch.  We can work through a Sustainability questionnaire with you and help you to determine whether ESG investing is right for you.

Create Financial Management
Address: York House, Stephensons Way,
Wyvern Business Park, Derby, DE21 6LY
Email: administration@createfm.co.uk
Phone: 01332 548 100

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