ESG is short for Environmental, Social and Governance. It is simply a type of investment approach that uses these 3 criteria to assess potential companies for investment purposes. It has become increasingly popular over the past number of years. This is because people have begun looking more seriously at investing in options aligned to their own values.
ESG investing is sometimes referred to as sustainability or socially responsible investing. But it is more encompassing that just those areas. It is also broader than the existing ethical investment approach. This tends to solely focus on environmental factors. ESG is an umbrella term for investments that seek positive returns while having a long-term impact on the 3 areas. These are society, environment and the performance of the business.
The ethos behind this approach is about aligning people, politics, and the planet with profit. Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.
80% of Irish customers felt it was important to take these factors into consideration when making an investment decision. Our skilled financial advisors can help you understand this area fully. And how your pension or investment can benefit from ESG investing.