Earth Day on April 22nd is a time to assess our progress while contemplating the obstacles ahead. This is a golden opportunity to ensure that your investments are capable of riding out the environmental hurdles that will come our way within this upcoming decade.
Dominic Rowles, the leader in ESG analysis in Hargreaves Lansdown, has this to say on the topic: “Each time Earth Day comes around, we should take a moment to appraise how our portfolios are faring when it comes to observing greater social responsibility.
“Where possible, large corporations can incorporate balancing their books with a more sustainable approach – for example, investing in renewable energy, the ethical treatment of their employees and showing more transparency in their operations.
“The task of choosing more ‘environmentally-friendly’ stocks may be daunting for novice investors, but tracking share prices and following current news can help. Additionally, you can always make use of advisors and researchers to stay up to date with the latest in green investing.
“Crucially, investor sentiment has shifted away from tradition and a more proactive stance is being taken relating to ESG’s. This has had a direct impact on the growth of the stock market – and will continue to do so moving forward. Consequently, a company’s long-term performance is now more aligned with its environmental, social, and governance commitments.
“In short, the modern trend for investing with an ethical standpoint is the new reality. As such, the question of ‘what is the best fit for my portfolio?’ is taking precedence – and the meaningful changes this brings can be felt far and wide.”
As Earth Day arrives, it presents a golden chance to evaluate our portfolios and determine whether they are properly prepared to handle future eco-friendly challenges. Making slight shifts towards ESG (Environmental, Social, and Governance standards) could go a long way in helping to make a difference. After all, each day is an opportunity to begin doing right by the planet and its inhabitants in our very own small way.