ESG investing

ESG investing is a form of sustainable, or green investing that considers Environmental, Social, and Governance factors within its criteria. It is becoming an ever increasingly popular method of investing as greater numbers of investors become conscious of the wider implications of where they invest their money.
Many companies and funds have ESG strategies in place to ensure they are adhering to best practices but in reality, there are some companies that simply do not meet the criteria. ESG investing is about identifying the appropriate companies and funds and supporting the work they are doing whilst building wealth within an investment portfolio.

This is not a straightforward approach. A number of companies that are heavily committed to a more sustainable future are likely to be fledgling businesses, and as a result, higher risk investments. There are also pitfalls to avoid where companies claim to be ESG compliant but the reality can be a little different. Funds can help to screen stocks and offer a good alternative for newer investors.
What does ESG mean?
Environmental factors take into consideration the conservation of the natural world, social factors look at how a company treats both employees and people outside the business whilst governance factors consider how a company is run.

You’ll find a number of articles below that relate to ESG investing and stories around the wider ESG topic. We’ve got loads of companies and fund ideas for you in our Green Investing section