ESG Investing

While industry headlines may lead on ESG investing as the best and most responsible investment option, it’s important to understand exactly what is involved and if it’s right for your own financial journey.

ESG investing is becoming increasingly popular as a way to invest in a sustainable and socially responsible way. However, it is important to understand the criteria for ESG classification, which can vary depending on the reporting initiative used. While ESG investing may not be suitable for everyone, financial planners can guide clients through the process to determine if it is the right choice for their personal and financial goals. Despite the potential benefits of ESG investing, analysts suggest that a fully diversified portfolio may still outperform an ESG portfolio, although this may change if more companies become ESG-classified in the future. Overall, ESG is a complex and evolving area of investment that requires careful consideration and guidance from a financial planner.

Editors Notes:

David Gow is a Director and Financial Planner at Acumen Financial Planning, part of The Financial Planning Group.

david.gow@acumenfp.com

Information correct at time of writing. The content within this article should not be looked upon as advice or recommendation. Readers should seek appropriate guidance from their financial planner.

Published in The Press and Journal on 28 February 2022. Read the full article here.