Jul 1, 2020
This week on the Grow Money Business podcast, we’re talking about an investment strategy that has become very popular in the last few years. Environmental, Social & Governance Oriented (ESG) Investing, otherwise known as socially conscious investing or sustainable investing, is a concept where people invest their money in a way that aligns with their personal values. In today’s episode, Grant talks about what ESG investing is, how it performs compared to traditional investment strategies and some things you should consider if you want to implement ESG investing in your portfolio.
[01:18] Introduction – What ESG investing is and how people started to make investment decisions based on their personal values.
[06:44] The Growth of ESG Investing – How the concept of ESG & socially conscious investing evolved over the years and currently available options for ESG investing.
[09:38] Is It a Decent Strategy? – Grant shares his take on the viability of ESG investing.
[12:36] IMF Study on ESG Investing – In October 2019, the International Monetary Fund released a report based on their study on ESG investing. Grant reviews what this report tells us about the way ESG investing affects the performance of investments.
[16:14] Study on ESG Investing by Bank of America – Grant reviews the findings of a study that revealed how the top ESG-ranked companies outperformed the average S&P 500 company.
[22:52] Other Studies – Grant explains findings from two other studies on ESG & socially conscious investing by two reputable organizations.
[30:17] Conclusion – Grant sums up what the four studies tell us about the viability & performance of the ESG investing strategy.
[32:36] Things You Should Keep in Mind – Challenges and limitations associated with ESG investing and things you should consider when you’re screening for ESG investment options.
IMF Global Sustainability Report, October 2019:
Bank of America – Why ESG Matters:
Deloitte Insights: Advancing Environmental, Social, and
GMO Whitepaper - ESG: Improving Your Risk-Adjusted Returns in