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ESG Investing: A Guide to Socially Responsible Investments

Investing

If you are looking to make responsible and thoughtful investment choices, you have no doubt heard of the term ESG Investing. 

Today we clarify all of your questions surrounding  socially responsible investments through our cheatsheet: ESG Investing 101. 

What is ESG Investing?

ESG Investing is a strategy that investors use to analyze their stocks. 

ESG itself stands for: 

E-environmental

S-social

G-governance 

By evaluating stocks with these three factors in mind, it has been proven to reduce risk to your portfolio as well as generating great returns.  

Environmental

The environmental part of ESG investing refers to how your investments can impact the Earth.  

When deciding if they feel comfortable investing their money with a specific company, individuals focused on environmental topics may research the following aspects of a company:

  • Carbon footprint
  • Green infrastructure, technologies, and products
  • Policies on climate change
  • History with the EPA

Social

This branch of ESG is for investors who are interested in identifying the social culture of a company, including the company employees, customers, and suppliers. 

These investors may look into information on employee pay and benefits, turnover, training/development, and diversity in the workplace. 

Additionally, many investors research sexual harassment prevention protocols and even customer service support. 

Governance

The governance piece of the puzzle refers to the corporate members such as the board of directors, oversight committees, and shareholders. 

Essentially, investors interested in governance like to understand how the business is being run, and they often look into details such as the following:

  • Executive pay and bonus structure
  • Long-term growth incentives
  • Board diversity
  • Proxy access
  • Transparency with shareholders

Want to Know More About ESG Investing in Northern Virginia?

If you are looking to invest your money in a socially responsible way, ESG investing in Northern Virginia may be the best strategy to use.  

At Argent Bridge Advisors, we are here to provide comprehensive financial solutions for you and your family. 

As such, our experienced financial advisors always available to discuss the best strategy when deciding where to invest your money, in order to help you meet your goals and feel good about where your money is being invested. 

If you are interested in working ESG investing in Northern Virginia, contact our office today!