Miller and Associates at LPL Financial,
123 Hodencamp Road, Suite 204,
What is Sustainable Investing?
Sustainable Investing has broadened the measure of corporate performance beyond simply financial metrics. Sustainable Investing considers material environmental, social and governance, or ESG criteria and their relative impacts on corporate performance. Sustainable Investing has grown to be more than simply excluding certain companies or industries that do not align with an investor’s values. Investors that consider ESG criteria have begun to reward companies and industries that do align with their interests and values.
It is believed that Environmental, Social and Governance issues may present material risks for companies and industries, these risks in turn may translate into risks for investors. Some examples of these issues appear below,
Environmental screening is associated with the practice of considering environmental and energy matters as a metric of corporate performance. Some of these matters may include;
Social screening is associated with the practice of considering relationships with stakeholders such as employees, customers, communities and governments as a metric of corporate performance. Some examples include;
Governance screening considers the short and long-term impact of board decisions on shareholders and other stakeholders. Items that fall under monitoring may include;
Why is Sustainable Investing Relevant?
Climate change, concerns over corporate social responsibility and corporate governance are becoming more of an interest to investors. We are able to explain these complex topics to clients in a straightforward and concise way.
If you’re looking to learn more about Sustainable Investing please get in touch with our team. With offices located in Thousand Oaks and Truckee the Miller/Manocchio Team our team is dedicated to helping clients align personal capital and core values. Contact the Miller/Manocchio Team at Waddell & Reed to start planning for your future today by calling our team at (530) 412-3757 or sending an email to email@example.com.
This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions. 10/20