Your investment portfolio can be so much more than a collection of assets. All aspects of your wealth management should provide a sense of pride and fulfillment, and by aligning investment decisions with your values, your portfolio can begin to reflect what’s most important to you and your family.
Considering Environmental, Social and Governance factors (ESG) can help you chart a path toward more socially responsible investing. Environmental factors consider the impact on the planet caused by the companies you’re investing in. Social factors address a company’s relationship to their employees, customers and community. Governance factors look at corporate leadership standards. Contrary to popular belief, taking these factors into account does not mean you need to sacrifice returns. Companies that take these factors into account tend to mitigate risks, reduce taxes and ensure long-term sustainability.
“This sounds great, but how do I start integrating ESG into my impact investing?”
Speaking with your advisor should be enough to get that process started. Value alignment can happen in four easy steps. First, determine what matters most to you. Gather your stakeholders and discuss a few desired outcomes from your investments. Second, develop your impact statement. This will serve as an easy to reference compass when making decisions. Third, implement your ESG Strategy. Break this journey into easy to manage steps, and strategize for tax efficiency. Lastly, set up annual meetings with your advisor to check on your progress.
Incorporating ESG factors into your investment portfolio, can bring stakeholders closer together, establish a deeper connection to your assets and help you leave behind a lasting legacy.Download PDF