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Blogs

Investing for the future you care most about

John Tennaro, CIMA®, CSRIC™

July 08, 2021

Examining ESG factors lets you use your investment dollars to influence the world around you.

In various aspects of our lives, we make decisions based on what matters most to us: where we live, who our friends are, even what restaurant we want to eat at. What if we brought that same focus on what matters to our investment decisions? 

In today’s market, there are a lot of options to promote change – or to preserve and protect the things you care about—simply by where you direct your investment dollars. Increasingly, this approach is called “ESG”: an investment discipline incorporating ESG factors into the decision-making process.

 

How can ESG factors benefit your portfolio?

  • E = environmental. This factor evaluates companies’ responses to consumer demand for innovative, sustainable products, services and practices.
  • S = social. In the investing realm, this means companies that aim to do right by all the stakeholders they service, not just shareholders. That includes customers, employees, suppliers, and their communities.
  • G = governance. This factor looks for companies with best-in-class corporate governance practices, such as diverse perspectives, ethical decision making, and transparent communication.

Companies that meet these tests often have forward thinking management, as well as innovative products and services that help to lay a foundation for long-term financial success—and have the potential to be attractive investments. Evaluating these factors is also a way to unearth risks that may be lurking within an otherwise financially successful firm.

To learn more about how you can make ESG thinking part of your investment legacy, contact your CIBC Private Wealth advisor.


John Tennaro, CIMA®, CSRIC is the Head of ESG & Impact Investing Solutions, and is responsible for overseeing all aspects of our firm’s approach to ESG & Impact Investing.