What Do I Get Out of ESG Investing?
What is ESG? It stands for not only ethical factors used to measure a company's Environmental, Social and Governance (ESG) impact, but also a powerful investment tool.
- seeking to manage risks
- uncovering opportunities
- meeting mandates
- reaching financial goals
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the Fund's universe of investments may be reduced. It may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.