Environmental, Social & Governance Investing
Frisch Financial’s customized portfolios can incorporate an investor’s passion for investing in ESG. Our goal with ESG investing is to achieve both a competitive risk adjusted return while having an overall positive impact in the world.
What is ESG investing?
ESG investing or Environmental, Social, and Governance investing is a screening process which identifies companies for investments who are leaders in sustainable business practices and responsible business policies.
What metrics does ESG investing use?
Years ago, the main investment strategy of sustainable investing was exclusion. Portfolios would exclude industries such as tobacco, alcohol, gambling and firearms. Today, portfolios will include companies based on a broad set of standards. ESG scoring or ratings include:
Environmental criteria - looks at how a company performs as a steward of their environmental risk control.
Social criteria - looks at how a company manages its business and employee relationships.
Governance criteria - looks at a company’s leadership, executive pay, board members, overall transparency, internal controls, and shareholder’s rights.
If you are interested in ESG investing and would like to receive more information, please contact us.