Growing Interest in Socially Responsible Investing
This week, Craig Siminski, of CMS Retirement Income Planning, shares an article discussing socially responsible investments that may enable the pursuit of financial returns and make a positive global impact:U.S. assets invested in socially responsible strategies topped $17.1 trillion at the start of 2020, up 42% from two years earlier. Sustainable, responsible, and impact (SRI) investments now account for nearly one-third of all professionally managed U.S. assets.
This upward trend suggests that many people want their investment dollars to pursue a financial return and make a positive impact on the world.There is also wider recognition that good corporate citizenship can benefit the bottom line. A favorable public image might increase sales and brand value, and conservation efforts can help reduce costs, improving profit margins.
Some harmful business practices are now viewed as reputational or financial risks that could damage a company’s longer-term prospects.
ESG Explained
SRI strategies incorporate environmental, social, and governance (ESG) considerations into investment decisions in a variety of ways. ESG data for publicly traded companies is often provided alongside traditional financial data by investment research and rating services.
Some examples of prominent ESG issues include climate change, sustainable natural resources, labor and equal employment opportunity, human rights, executive pay…
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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 22 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
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