top of page
  • Writer's pictureVolpe Financial Solutions


What is ESG?

Environmental, Social and Governance (ESG) are factors that provide a framework for breaking down the concept of sustainability into the three primary areas of responsible investing. A common misconception associated with sustainable investing is that it mainly involves exclusions: to exclude stocks that investors don’t want to invest in, such as tobacco and alcohol companies. This is only one method investors can use to take a more responsible approach to their investment portfolio. Other approaches include:

  • Positive Inclusion - Investing in companies that have positive ESG attributes

  • Thematic - Investing in ESG themes, like alternative energy, women in leadership, cybersecurity etc.

  • Impact - Targeting both social/environmental impact and financial return

  • Philanthropy - Delivering non-financial outcomes as the primary goal

Some ESG factors to consider when researching funds: · Consider if the fund has ESG factors or if it targets a specific theme · Understand how the fund excludes companies, and ensure that any holdings align with your values · Review their proxy voting history to see their active ownership and engagement · Look at how the fund is rated by external agencies in terms of their ESG scores


Values and valuations Research confirms that responsible investing is not an either-or decision when it comes to investment performance. Using ESG investments may reduce risk and offer the potential for greater long-term returns, compared to similar funds that do not include ESG considerations. But investing today could help protect portfolio returns from the next data security breach, environmental catastrophe or management crisis.


A set of global goals was developed by the United Nations, in consultation with world leaders, international organizations and the general public, to help combat startling facts like these. Referred to as the sustainable development goals – or SDGs – these 17 goals aim to confront the biggest issues affecting our world today

“Sustainability is a top-of-mind topic for many people, as is investing in companies that align with those sustainability goals. More investors are carefully considering which investments suit their values” – 79% are interested or actively investing in socially responsible companies


At VFS we are excited to announce we are Registered Responsible Investment Specialists with the RIA to ensure we are up to date on all things ESG, which helps us be being able to understand how to consider the appropriate investment for each client’s situation. We look forward to showing you how investing responsibly could increase your long-term portfolio performance! *Mutual funds offered through Brett Volpe


“Mutual Funds are sold through Investia Financial Services”

Investia Financial Services is not financial responsible or liable and does not share any financial losses for dual occupations/outside business activities offered by the advisor

9 views0 comments


bottom of page