In a climate of less government regulation, some companies are taking a stance on environmental, social and governance issues to reflect their missions/values.
Investors, too, have become increasingly interested in where their money gets put to use and this is creating an opportunity for asset managers who craft ESG portfolios.
But, do these types of companies make for better investments?
According to Sonia Kowal, president of Zevin Asset Management, a $600 million firm specializing exclusively in ESG portfolios, “In general, companies with the strongest records on employee relations and environmental sustainability, for example, often have better financial performance over the long run than those with the weakest records… Given this, why wouldn’t you use this information advantage when looking for investment ideas?”*
We only scratched the surface of ESG and sustainable investing, but we plan on continuing the discussion with Joey Fishman, so stay tuned.
Anthony is currently heading the Educator/403(b) Division at Ritholtz Wealth Management LLC. The goal of our division is to transform the way teachers save for retirement. For disclosure information please see here.