ESG Investing: Aligning Purpose with Performance
Environmental, Social, and Governance (ESG) is an investing strategy that seeks to align financial goals with personal values. It goes beyond analyzing companies solely on traditional financial metrics—it adds another layer of insight by evaluating how businesses manage their environmental impact, social responsibilities, and corporate governance.
At its core, ESG investing is about identifying companies that not only strive for profitability, but also operate with long-term sustainability, ethical leadership, and transparency. By integrating ESG considerations into the investment process, investors gain the ability to make more informed decisions while supporting positive global change.
What Is ESG Investing?
ESG investing is a forward-thinking approach that screens companies based on non-financial factors that have a growing influence on performance. The three core pillars include:
- Environmental: How does a company address climate risk? This includes its carbon footprint, resource usage, pollution control, and climate-related policies.
- Social: This category evaluates how companies treat employees, engage with communities, and promote diversity, equity, and inclusion.
- Governance: Governance examines leadership integrity—board diversity, executive pay, shareholder rights, and how well companies uphold ethical business practices.
By analyzing companies through these lenses, ESG investors can avoid exposure to businesses with elevated reputational or regulatory risk and instead focus on firms that are positioning themselves for sustainable growth.
ESG Model Portfolios
The ESG Model Portfolios combine the benefits of low-cost ETFs with tax efficiency and sustainability-focused investing.
Objective: Accumulation of Wealth
Focus: Global Sustainability
Four Portfolio Strategies Based on Risk
Our ESG portfolios are offered in four risk profiles—each built for different investment horizons and volatility comfort levels. All portfolios include a global mix of equities and fixed income, with a tactical component for risk management.
Aggressive
Designed for long-term investors seeking maximum capital appreciation with high volatility tolerance.
Growth
For long-term growth with a balance of global equity and fixed income exposure.
Moderate
Balanced exposure for moderate growth and some volatility.
Conservative
Focused on capital preservation with greater allocation to fixed income.
Note: Sleeve allocations are rounded and subject to change. Please consult our office for current allocation data.
Let us help guide your investment strategy by aligning your values with your financial goals. Contact us today to learn more.
All investing involves risk including the loss of principal. There is no guarantee that a diversified portfolio will enhance returns or protect against loss. Risk mitigation strategies seek to limit exposure but do not guarantee outcomes.
ETFs are subject to investment risks, including the potential for trading at prices different from their net asset value (NAV). Bonds are sensitive to interest rate risk and may be worth less than their original value if sold prior to maturity.
Environmental Social Governance (ESG) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.