Thinking of Going Green: An Environmental, Social and Governance Checklist

Environmental, Social and Governance (ESG) investing is not new. This proactive investing has been around for decades. Often going by the name of Social Responsible Investing (SRI) has evolved and matured. WIth its maturity has come a host of press and headlines. This has also led to much confusion. Many mutual funds and investment companies announcing ESG investing, though they may leave much to desire in practice.

What is one to do?

Here is a quick list to consider when you are looking for an ESG investment:

1.       Understand your own investing priorities.  What issues matter most to you?  What do you absolutely not want to invest in? Don’t invest until you are clear on these personal choices.

2.       Take the time to ask questions and dig deeper before you place your money with a mutual fund or an investment manager.  You can learn the depth of their commitment beyond the gloss of the latest ESG terms and investment returns.  Taking the time to learn more will align your investments with your goals.

3.     Seek out tried and true investment companies with a mission in place.  The companies that have been in the SRI space for the past twenty years have weathered the market swings, the negative press and kept at their ESG mission.  They have the knowledge, expertise and understanding of personal preferences to hold your money to a higher standard, whether you are investing your first thousand in a mutual fund or a million a purely ESG firm.