Should you invest in a firm with a high ESG rating?

If you manage investment portfolios, you can invest in firms with high environmental, social, and governance (ESG) ratings to positively impact the world while maximizing returns for your firm and clients. Here’s a primer on ESG criteria’s role in the investment space and seven strategies to consider for purpose-driven decision-making.

What is ESG investing?

ESG, or environmental, social and governance investing, is a way to build a more ethical portfolio. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations.

Should you invest in ESG funds?

Choosing ESG funds can help align your investments with your values and support companies that prioritize sustainability, social responsibility and good governance. However, it’s important to note that ESG investing does not guarantee superior financial returns. How Do ESG Funds Work?