Good Money is Becoming the Norm

Editor's Views: Not everyone puts ESG at the heart of their investment strategies, but decisions we make as consumers and investors have a big impact on the wider world

Holly Black 23 April, 2021 | 10:37AM
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Earth Day might not sound like something that has much to do with your investment portfolio, but the fact is that everything has something to do with your investment portfolio. Because the companies, countries and assets into which you invest your money gets put to work in the world and it has the power to do good, or not to.

So you might think you’re just investing in, say, a chocolate company because you have a very sweet tooth (or more likely you think it’s a moaty business with strong fundamentals), without realising you’re contributing to deforestation in the Amazon or the unsustainable farming of palm oil in South East Asia. With your investment in a coffee producer you may be unwittingly contributing to the world’s water scarcity problems, and even a real estate investment could be generating more carbon emissions than you’d realised.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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