ESG investing, also known as environmental, social, and governance, has been renowned as a perfect way of utilizing investment resources aligned with personal values. However, in the last couple of years, the quality of ESG investing has gone down. In this week’s episode on Grow Money Business, we discuss the ESG fund, the three big issues of ESG, ESG versus non-ESG, overall transparency, and more.
Show Notes
[02.37] ESG – Grant begins the conversation with a general overview of environmental, social, and governance investments.
[04.10] Three big issues – Greenwashing, nepotism, and performance are the three big issues related to ESG investing recently.
[06.15] Greenwashing – Grant dives into what greenwashing is and how it happens at both the fund and company levels.
[11.22] Drawing up an ESG fund – Grant explains how weight and elimination are the two primary ways to build a portfolio that aligns with a specific ESG ideology.
[15.35] ESG vs. Non-ESG – Grant shares how research revealed that most companies under ESG fund in the USA had the worst record in 2021.
[19.45] Nepotism – Grant dives into the concept of nepotism in the ESG field.
[27.24] Transparency – Grant dives into the importance of transparency when it comes to ESG funds in your organization.
[28.05] Performance – Grant shares what investors should want to know regarding performance related to ESG investing.
Resources
An Inconvenient Truth About Environmental, Social, and Governance Investments
https://hbr.org/2022/03/an-inconvenient-truth-about-esg-investments
Greenwashing And ESG: What You Need To Know – https://www.forbes.com/advisor/investing/greenwashing-esg/