“Clients also need to know ESG investing is not any more expensive than traditional investing,” added Kelly Coyne, vice president of global women’s strategies at Impax Asset Management LLC and Pax Ellevate Management LLC, both of which focus on ESG investing and ESG funds.
But companies are still not perfect on the issue, Stil explained. “Companies are not black or white,” she said. “You are looking for companies that are moving in the right direction.”
Starbucks is an example of a company that reacted well and changed after a recent controversy in which two black customers were ousted from one of its stores. The company apologized and is initiating employee diversity training, Gitterman said.
Equifax, on the other hand, did not take action when facing turmoil. The company had a small data breach but did nothing to fix the problem and ended up with a massive breach that devastated its stock, Gitterman said, and those types of companies should be avoided by ESG-conscious investors.
But in most instances, Stil said, there is hope. “Companies are getting cleaner.”