How do you really metricize ESG goals and stay true to your beliefs?
Friday, Oct 13, 2023
Start with a clear vision.
Firstly, it is important for you to precisely articulate your values and priorities. This is required, as this will be the foundation on which your strategy will be built. The United Nations has 17 Sustainable Development Goals. From eradicating world hunger and gender equality to a clean energy transition, the UN has a clear vision for sustainable development. Go through and ponder what values really strike you and resonate with you.
Seek out committed companies.
After you have identified the goals that you care about and decided to allocate your capital toward that social cause, the next step involves finding the companies that share your commitment to these causes. You can read and review their mission statements or mandates. Most companies ensure to explicitly state it. By aligning your investment with these companies, you are now supporting the cause that you really value!
Follow developments and stay informed.
It is also very important to stay informed. Ethical investments tend to have a correlation to the political climate as well as the generic perspective of the entire societal fabric concerning a particular cause. If, for some reason, a cause is ignored, your investment will reflect the same. If a political party erases the subsidy in a particular sector, such as offshore wind energy, that the previous party in power had mandated, such decisions will have a major impact on the operation of the offshore wind companies.
Albeit, if you aren’t that great with that, you can let the research company that creates the small cases take care of that! Greenportfolio has excellent small cases that are professionally managed so that you do not have to worry.
But on the contrary, that also means you can capitalize on emerging opportunities!
Use Data!
Many resources exist to assess the social impact measures of companies. You can use tools such as As You Sow and Sustainalytics to gain a better understanding of and evaluate performance across various ESG parameters. Make sure your capital maximizes change for good by making use of these excellent databases. This way, you can ensure that you hold on to your beliefs. You practically have the right to be vocal about the necessitated change, as you are not just a meaningful contributor but rather a company stakeholder!
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