What is ESG investing?

“At its core, ESG investing is about influencing positive changes in society by being a better investor,” says Hank Smith, head of investment strategy at The Haverford Trust Company. According to Smith, ESG investing assumes that there are certain environmental, social and corporate governance factors that impact a company’s overall performance.

Are investment management firms incorporating ESG research into the investment process?

Investment management firms such as Candriam and T. Rowe Price are adding an ESG lens to the investment process and integrating ESG research into the investment decision-making process. ESG incorporation may no longer be a differentiator for investors, but rather a standard input for consideration in the investment decision-making process.

What is environmental social and governance (ESG) investing?

Environmental, social, and governance (ESG) investing is used to screen investments based on corporate policies and to encourage companies to act responsibly. Many brokerage firms offer investment products that employ ESG principles. ESG investing can help portfolios avoid holding companies engaged in risky or unethical practices.