ESG Investing (January 6th, 2022)

Are you looking for a wider range of investment options for 2022? How about an industry that over the past 16 years has grown to almost $6.5 trillion? Well, what would that area of the market be? ESG investing, environmental, social, and governance values. By the end of the third quarter of 2021, the United States inflows were over $15.7 billion, according to Morningstar. SEC Chairman Gary Gensler stated back in July of 2021, today's investors increasingly want to understand the climate risk of the companies whose stock they own or might buy; however, according to Wharton's financial professor Goldstein, traditional investors look for firms that generate good cash flow and profits. The so-called ESG investors not only look for cash flow and profit, but look for firms that do good for society and emphasize ESG components. This may create a little bit of confusion, but it think no one can underestimate the opportunity that we see going forward when we see stock prices or people investing in companies that they feel like are going to do something good for society, and that good for society could be reflected in their stock prices.

If you would like more information on ESG investing, feel free to contact any of us here at Prosperity Partners Wealth Management. We would be more than happy to provide you with information on understanding environmental, social, and governance values investing opportunities. Make 2022 a great year.