When Values and Investing Align

Scott Dauenhauer, Tony and I caught up with Joey Fishman, Ritholtz Wealth Management’s ESG expert on the Planning to Teach and Retire Rich Podcast to discuss ESG and sustainable investing.

In a climate of less government regulation, some companies are taking a stance on environmental, social and governance issues to reflect their missions/values.

Investors, too, have become increasingly interested in where their money gets put to use and this is creating an opportunity for asset managers who craft ESG portfolios.

But, do these types of companies make for better investments?

According to Sonia Kowal, president of Zevin Asset Management, a $600 million firm specializing exclusively in ESG portfolios, “In general, companies with the strongest records on employee relations and environmental sustainability, for example, often have better financial performance over the long run than those with the weakest records… Given this, why wouldn’t you use this information advantage when looking for investment ideas?”*

We only scratched the surface of ESG and sustainable investing, but we plan on continuing the discussion with Joey Fishman, so stay tuned.

*Source:  “Is ESG investing going mainstream?” Jeff Benjamin, InvestmentNews, February 10, 2018