ESG Investing: Do Well While Doing Good

You don’t need to choose!

Whether you are brand new to the stock market or are an experienced investor, you may feel you have to choose between making the world better or being financially prosperous. We are here to tell you that is not correct. You really can have it all.

Predicting Success

You see, investors used to rely heavily on profit and loss statements as a predictor of company success. But things have changed. Profitability today is not necessarily a guarantee of success in the future. As a result, many investors are using ESG factors to determine whether a company would make a solid investment.

What? ESG?

ESG stands for Environment, Social, Governance. ESG factors include caring for the environment, treating employees and vendors well, creating positive customer experiences and practicing ethical governance and corporate responsibility. This is incredibly exciting! It means that we can reward the good behavior of a company by showing support through investing in them as well as shopping with them. And as a shareholder, we get a “seat at the table” and have the power to vote on company decisions.

But is ESG Investing Profitable?

Yes! And in the COVID-19 economy, the spotlight is shining even brighter on corporate accountability. More and more investors are creating portfolios that are weighted in the direction of companies with strong ESG behavior. The Federate Hermes survey reported:

“With nine out of 10 advisors being asked about ESG, a majority of advisors are considering responsible investing when making recommendations to their clients.”

Simply, more investors means that the stock prices of strong ESG companies are expected to go up, creating opportunities for financial growth for large and small investors alike.

You need to know.  StockSquirrel can help.

StockSquirrel is committed to keeping our members informed about the positive actions of the companies they care about.  Check out previous blogs about McDonalds who changed packaging to be more environmentally friendly and companies like Target, Dick’s Sporting Goods and Dollar Tree who realized doing right by employees was a path to success.  Sign up below to become a member of the StockSquirrel community.

Whether it’s a living wage or the switch to plastic straws, we will get you the information you need to do good and do well!