Sherpa Wealth Strategies Financial Planner in Bend, Oregon

The (E) in ESG

Erin Weber

The “E” in ESG

There are a lot of different terms for responsible investing. SRI stands for Socially Responsible Investing, or Sustainable, Responsible and Impact investing or some combination of the two. There’s also green investing, values-based investing and ESG investing. ESG stands for environmental, social and governance. Companies are evaluated on ESG metrics in looking at their overall impact on the environment, society, and their communities. ESG factors offer portfolio managers added insight into the quality of a company’s management, culture, risk profile and other characteristics.

Let’s look at just the “E” aspect of the ESG criteria. Below are some factors that are analyzed when evaluating a company’s impact on the environment.

Environmental Considerations

  • Carbon emissions
  • Use of natural resources and conservation strategies
  • Compliance with governmental regulations
  • Environmental impact of supply chain
  • Environmental impact of products
  • Ethical treatment of animals

The use of ESG criteria is becoming more common as investors aim to see their assets and investment planning generate long-term competitive growth and a positive impact on society.

Sherpa Wealth Strategies understands your values lead your life, and therefore have a place in your investment strategy. If SRI or ESG investments are of interest, talk with your financial advisor about how we can implement sustainable investing as a core holding or a complementary strategy.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.


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