Investment management firms that are committed to Responsible Investing will try and help clients grow wealth while advancing the Environmental, Social, and Governance (ESG) performance of publicly-traded companies. Responsible Investing seeks to generate sustainable value for investors, shareholders, for other company stakeholders and for society as a whole. This type of investing has been around for many years, but the theory behind it has not been fully understood.
Responsible Investing does not require ruling out investment in any sector or company. It involves including ESG information in investment decision-making, to ensure that all relevant factors are accounted for when assessing risk and return.
Exactly how an investment management firm practices this can vary. It can include:
- integrating ESG information into overall company analysis;
- using shareholder voting rights to influence company behavior;
- encouraging investee companies/entities to disclose information on the ESG factors that do or could affect them;
- contributing to the shaping of investor-relevant public policy;
- promoting wider acceptance and use of responsible investments within the investment industry.
With investors becoming more concerned with how the products and services they choose are consistent with their overall values, Responsible Investing is an approach that can fulfill that need.
Please contact one of our Credential Asset Management Inc. Mutual Funds Investment Specialists if you have questions or would like to learn more about Responsible Investing.
Mutual funds and financial planning services are offered through Credential Asset Management Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds.