Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Feb 14, 2021

In 2019, a study by Investopedia found that the majority of affluent millennials were wary of investing because they did not feel knowledgeable about it. Fair enough. It would be unwise to take risks with your money with something you are not knowledgeable about. 

Yet, despite their slow entry into the market, millennials are becoming more interested in investing as a means to grow wealth and save for the future. This is great for those millennials who are taking the time to learn more about investing and put it to use, and it is good news for companies looking for new investors. However, it also means that businesses need to work on improving their ESG compliance.

What is ESG in the financial world?

ESG is short for environmental, social and governance. It is a standard of measuring how environmentally friendly, socially equal and ethically operated a business is. These are all issues that millennial investors tend to care deeply about, which means that to attract them as investors, businesses need to put in more work to score high in all three areas of ESG measurement.

What does ESG mean for investors?

Whether you are a new millennial investor or a seasoned stock market trader, it is time to pay attention to ESG investment. Millennial investors may be more interested in investing in ESG-compliant companies, and seasoned traders may want to get on board to generate returns from ESG sectors that perform well.

You can discover a company’s ESG score by visiting the websites of various independent reviewers, such as:

Talk to a ProVise CFP® professional about your investment strategy

Are you a new investor looking for environmentally or socially friendly companies to invest in or are you a seasoned investor looking to further diversify your portfolio? Investing in ESG-compliant businesses might be right for you. However, before investing, you need to take a look at your financial plan and decide how ESg investing will factor into it. Without careful planning, you might eat up too much of your funds or risk an unnecessary loss for misguided gains.

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 your investment strategy? Contact ProVise today to schedule a complimentary consultation.