When you think about investing, you probably want your money to grow - but maybe you also want it to do some good.
That’s where ESG investing can be of interest.
ESG looks at three key areas:
“E” stands for environment. It looks at how companies handle climate impact and natural resources.
“S” is for social factors, including product safety and the well-being of a company’s workers.
“G” is governance, which considers a company’s ethics and transparency and how responsibly it is run.
At its core, sustainable investing is about aligning investments with personal values while still focusing on long-term financial outcomes.
You may wonder whether investing sustainably means sacrificing returns.
A study by New York University found that investing in companies with strong ESG practices does not inherently diminish returns - and these investments often perform better over time.
But quality still matters here.
Focus on well-run, financially strong companies to help you build more stable, long-term results, whether you choose ESG investing or something else.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson, and Hawes Dickerson. Members SIPC.
