Did you know that over $50 trillion is forecasted to be invested in ESG companies by 2025? Many investors are expanding their portfolios to include ESG companies, which prioritize environmental, social and governance sustainability.
ESG investing means investing in companies that consider their overall impact on their environment, community and employees. Businesses that focus on combating climate change, deforestation and inequality are just some examples of ESG-centered companies.
2 ways ESG investing can benefit you
Investing in companies that support the planet can give purpose to your portfolio. Beyond its global impact, however, ESG investing can boost your personal investment strategy. You can benefit from ESG investing because it can be:
- Cost effective — ESG companies tend to be efficient and cost effective over time, as they often use sustainable energy and care about waste. They also don’t often spend lots of money on advertisements or luxury items. Low company costs mean that your ESG investments can be cheaper and go further than standard investments.
- Profitable — Some investors believe that ESG investing could outperform traditional stock valuations. In fact, 69% of active U.S. investors say that ESG investing is profitable.
ESG investing benefits the world
The number of shareholders who demand that companies are sustainable and climate-friendly are forecasted to increase. That’s because ESG investing is not only good for investors; it’s good for people and the environment. Through ESG investing, you can help support companies that prioritize ESG values and help promote:
- Sustainable agriculture.
- Sustainable manufacturing.
- Decreased pollution.
- Improved workforce well-being.
- Financial transparency.
- Corporate accountability.
Talk to a ProVise CFP® professional about your ESG investment strategy and its benefits
Do you want to support ESG companies and diversify your portfolio? At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about the benefits of ESG investing? Contact ProVise today to schedule a complimentary consultation.