Investing in companies that prioritize environmental, social, and governance (ESG) factors has become increasingly popular in recent years. ESG investing considers a company's impact on the environment, its treatment of employees, and its corporate governance practices when making investment decisions. In this blog, we'll explore what ESG investing is and why it matters.

What does ESG specifically look at in a company?

Environmental factors include a company's carbon footprint, water usage, waste management, and other factors that contribute to climate change.

Social factors include a company's treatment of employees, its impact on local communities, and its commitment to human rights.

Governance factors include a company's board structure, executive compensation, and shareholder rights.

Why ESG Investing Matters

ESG investing matters for several reasons.

1. ESG investing can help investors align their investments with their values. Many investors are concerned about issues such as climate change, human rights, and social justice. ESG investing allows investors to support companies that are working to address these issues.
2. ESG investing can help investors identify companies that are well-positioned for long-term success. Companies that prioritize ESG factors may be better able to manage risks, attract and retain employees, and build strong relationships with customers and other stakeholders.
3. ESG investing can help drive positive change. By investing in companies that prioritize ESG factors, investors can help support companies that are working to make a positive impact on the world. This can help drive positive change in areas such as climate change, human rights, and social justice.

ESG Investing Strategies

There are several ESG investing strategies that investors can use. Some investors choose to invest in ESG funds, which can be mutual funds or exchange-traded funds (ETFs) that invest in companies that prioritize ESG factors. Other investors may use screening techniques to identify companies that prioritize ESG factors. Still, others may engage with companies to encourage them to prioritize ESG factors.

At Upbeat Financial, we use specific tools that take into account our client’s values and identify companies that can be invested in that align with our client’s goals. From anti-racism and women in leadership to climate focused as well as waste reduction- individuals’ values and priorities can be invested in via ESG investing.