Timothy Yee, a financial advisor with Green Retirement, Inc., discusses ESG investing in 401(k) plans with Ed Farrington, Executive Vice President of Retirement at Natixis Investment Managers. Natixis survey data shows that the majority of plan participants in the US would invest in their plan for the first time – or increase their contribution rate – if they had access to sustainable or responsible investments. Yee discusses the importance of fiduciary duty, and points out why ESG factors are financially relevant to investment performance in retirement plans.
For more information about the survey data referenced in this podcast, please read the ESG Investor Insights Report available on our website.
All investing involves risk, including the risk of loss. 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 universe of investments may be limited and investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. This could have a negative impact on an investor's overall performance depending on whether such investments are in or out of favor.