There is a way to throw the power of your wealth behind issues you care about. It is called ESG investing, which stands for Environmental, Social, and Governance. It incorporates a dual mandate that allows you to invest your wealth for the purpose of earning a financial return, while simultaneously making a positive environmental and societal impact by investing in companies that are screened by ESG criteria.

• ESG is not new, but the pandemic has accelerated the pace of change and shifted the demand and interests across the global policymakers and capital markets, led to an inflection point for sustainability issues and ESG investing. For example, we expect more supportive policies and regulations from Europe, China, and the U.S. in addressing the systemic risks of climate change, which is significantly under-estimated by the market.
• ESG opts in to companies that are integrating ESG considerations into their business models and financial decisions to drive competitive, long-term value and impact.
• ESG investing can reduce risk in a portfolio while delivering similar or better outcomes. Thanks to all the new rating tools (including those created by Morningstar), we can see an emerging case for ROI (return on investment) on ESG investments. Now investors can do good while doing well.

If you would like to plant a redwood tree seedling in a California forest in honor of someone’s memory, Click Here. Visit www.SilverOakWA.com to catch up on other important topics via our blog.