ESG investing (aka ethical/sustainable investing)

Author name:: By Simon Tarrant
Job title:
Date posted:: 30 July 2020, 2:45 PM

Environmental, Social and Governance investing sometimes known as ethical or sustainable investing is any investment strategy which seeks to apply non-financial considerations that align to a client’s ethical standards, including the impact of environmental, social, or governance factors on a prospective investment.

The impact companies have on the world, from climate change through to the treatment of employees is making headlines every day and with over $2.5 billion invested in ESG specific ETFs in Australia it is clear this an area of growing concern for the market.

Image of hand holding a small pot plant, with coins for soil, and a plant growing from said coin soil.

Investors seeking to implement a sustainable investment strategy can often be caught up in broad ESG definition implemented by funds which limit their investment options and ability to create a return. For example, an investor that is opposed to an investment in fossil fuels may not be opposed to investing in a gambling based business.

Using portfolio and stock screening tools Morgans can assist investors to maintain a direct investment portfolio that is aligned to their specific ESG criteria without being caught up in the broad definition which can limit the investment opportunities available.

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Simon is a Private Client Adviser at Morgans Gosford. Simon is passionate about creating quality financial strategies that are tailored and customised to an investor’s individual lifestyle, financial goals and risk profile.

If you would like to discuss your ESG investment options, please contact Simon at [email protected] or via (02) 4325 0884.

General Advice warning: This article is made without consideration of any specific client’s investment objectives, financial situation or needs. It is recommended that any persons who wish to act upon this report consult with their investment adviser before doing so. Morgans does not accept any liability for the results of any actions taken or not taken on the basis of information in this report, or for any negligent misstatements, errors or omissions.