ESG Investing

Incorporating Environmental, Social and Governance Issues into your Investment Decisions

We live on a fragile planet. Most of us are aware of the environmental impact of our own decisions: recycling is good, flying is bad.

But what about companies? The decisions they make have much wider-reaching consequences than decisions of individuals.

Investors need to be able to distinguish short-term profits from long-term prosperity. ESG relates to environmental, social and governance issues that affect companies in every sector.

Investors must find answers to a wide range of questions, such as:
• E: What is the level of the company’s carbon emissions? How dependent on water supply is the manufacturing process?
• S:: Does the company have unfair labour policies within its supply chain? Does the company support access to healthcare and education in developing markets?
• G: Do company executives benefit at the expense of shareholders? Are committees structured to be able to make the right decisions?

Analysts, investors and portfolio managers need to be aware of ESG factors when making investment-related decisions.

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