ESG Investing, or sustainable investing, means investing in a way that incorporates the principles of ‘E’, ‘S’ and ‘G’ – Environment, Social and Governance. For some investors, this is a high priority, and something to take into account when forming an overall investment strategy.
At Viridian, we have noticed an increase in enquiries about ESG investing, and how it could potentially be employed when building a portfolio.
That’s why we’ve made the decision to develop a process that allows you to incorporate these kinds of assets into your investment strategy. We aim to help you do this in a holistic, controlled way – one that delivers the best possible outcome for you.
Every ASX-listed company conducts business differently. For example, some may pay great attention to energy consumption or gender diversity. For others, perhaps having independent board leadership or capped/regulated CEO compensation are priorities. When you invest in a particular company’s shares, it can have a broader impact on society, the community and our environment, depending on the company’s preferences.
There are a range of criteria that can determine whether a company can be considered an ESG investment. In many cases, how a company has performed against these criteria can be difficult to identify. Your advisor is the perfect person to speak to about incorporating ESG investing into your overall strategy. He or she will know what to look for and where to find it.
You will receive an email from your advisor in the next two weeks asking you to complete a short survey. The survey will include questions about how you feel and what you find important when it comes to ESG investing. If you are able to complete it, your answers to these questions will greatly assist us in creating an ESG process that best suits you.
Ben Casley is an Investment Analyst at Infinity Asset Management.
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