Investment strategies differ, and this is why an investor or fund manager will identify various strategies and then determine how each one can be applied to specific market conditions.
This is where ESG (environmental, social and governance) investments caught my eye. ESG is an investment class that falls under the banner of “sustainable investments”. Briefly, ESG is an investment strategy that evaluates a company’s corporate actions with the aim of determining the company’s future financial performance. It includes aspects such as ethical and corporate governance issues, the management of a company’s carbon footprint on the environment, and making sure that there are systems in place to ensure a sense of responsibility. There are certain ESG issues that can be incorporated into such an investment strategy.
Why an ESG investment strategy?
Many investors are not interested anymore in only the financial return on their investments. They are also interested in the impact of their investments and the role that investments can play in support of global issues such as, among others, climate change.
A recent study indicated that millennials are more likely to trust a company or buy the products of such a company if the company has a reputation of being socially or environmentally responsible.
How are a company’s ESG scores determined?
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
