A more pragmatic approach can still value ESG as the traits it measures often indicate foresight and lateral thinking. Leaders with a good ESG strategy understand the ROI in things like positive public relations, a motivated workforce and a stable ecosystem. Even for people with a hardline, profit-driven view of our free-market economy, understanding that many others, including the press, the employee pool, activist groups and consumers, take ESG seriously is a good reason to do so as well.
ESG And Your Portfolio
Thus far, we have explained what exactly ESG is and why it is considered so important in today’s business world. But what should investors take away from all this information, and should ESG come into consideration when building a portfolio?
Part two of this series will discuss the facts and market research around ESG, and determine what role this metric should play, if any, in how investors allocate their funds.
Christopher Crawford is head of sales and marketing at Buffalo Funds. With over 10 years of experience working with financial advisors and family offices, Crawford notes that success for advisors begins with being a good communicator and a better listener. Buffalo Funds is an asset manager with 10 actively managed no-load mutual funds.