ESG Investing: Why do we need to start embracing it?

ESG or Environmental, Social and Governance investing put simply, is a type of investment approach that uses these 3 criteria to assess potential companies that they may wish to invest in. As a philosophy, it has become increasingly popular over the past 2 years. This is largely down to the fact that people are increasingly looking to invest in options that are akin to where their values lie.

ESG investing is also referred to as sustainable or socially responsible investing. It is broader than the existing ethical investment approach as it doesn’t just take into account environmental factors. It is about aligning people, politics and the planet with profit.

Here’s a simple video guide to ESG investing.

According to recent research 80% of Irish customers feel it is important to take these factors into consideration when making an investment decision. I believe taking an ESG view to investing is going to be a long-term consideration which remains with us and becomes part of our decision making in investment terms.

It’s important that investors start to fully understand this approach and how decisions are made around the 3 critical factors. If you would like to find out more about how your pension or investment can benefit from ESG investing please contact us or by email donald@donaldpmckenna.com or phone on 01-2966853.