The “S” in ESG
ESG stands for Environmental, Social and Governance. ESG criteria used to vet a company’s practices in regard to the environment and communities.
The “S” in ESG looks at an organization’s business relationships and impact on society, both internally and externally.
Social considerations can be:
- Investments and donations to the local community and giving employees the opportunity to perform volunteer work
- Providing working conditions that show high regard for its employees’ health and safety
- Participation in community development, such as providing affordable housing or fair lending
- Hiring practices that consider diversity and equal employment opportunity
- Prioritization of human rights everywhere it does business, including other countries
- Working with suppliers who hold the same values as the company
- Considering the interest of all stakeholders-customers, employees, suppliers, and communities- not just shareholders.
The use of ESG criteria is becoming more common as investors aim to see their assets and investment planning generate long-term competitive growth and a positive impact on society.
Sherpa Wealth Strategies understands your values lead your life, and therefore have a place in your investment strategy. If SRI or ESG investments are of interest, talk with your financial advisor about how we can implement sustainable investing as a core holding or a complementary strategy.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.