Now is an opportune time to discuss the growing movement of responsible and sustainable investing with clients. The recent signing of the Paris Climate Agreement demonstrates the role investors and corporations play in advancing economic and social goals.
This occasion and the recent adoption of the United Nations’ Sustainable Development Goals (SDGs) are driving momentum that, if maintained, could fully integrate environmental social governance (ESG) factors into investing. In the future, all investing could be seen as responsible. As this movement gains speed, and guidance continues to be introduced, it is imperative for advisors to understand the process and tools available to evaluate the impact of companies.
Gratifyingly, interest in responsible investing is increasing, especially among millennials, women and retirees. Nearly 90% of participants in defined contribution retirement plans, particularly millennials, find responsible investing appealing, according to a Calvert Investments survey. Additionally, 82% were likely to direct some or all plan contributions to responsible investment options if offered.