Partner News: Investing based on your principles
Nexia Australia is a full service accounting and advisory firm and a long-standing partner of the Association Forum. In this member article Nexia Financial Adviser Victoria Habra discusses sustainable investing.
Sustainable investing is known by many names – some people call it socially responsible investing, ethical, impact, or principles-based investing. Whatever the title, the fundamental principles are the same. It is an investment strategy which seeks to consider both the financial return whilst at the same time choosing to invest in companies that are striving to make a positive impact on the world.
Sustainable Investing consists of three primary areas – environmental, social, and governance (ESG investing).
• Environmental investments closely examine the way a company considers non-renewable resources, climate, and the move toward clean energy.
There are many managed funds and ETFs (exchange-traded funds) in the market today with these objectives, making environmentally friendly companies a popular investment choice for people looking to make an impact with their investments.
• Social investing focuses on companies that consider the impact of their business on all people, and seek gender equality, provide healthy working conditions and lifestyles, address wealth inequality, and show a commitment to charitable endeavors.
• The Governance aspect of sustainable investing looks to companies to promote business ethics as well as trust, transparency and compliance in the market place.
They are companies that make ethical business practices (not just profits) one of their top priorities. One example of strong corporate governance is including an independent audit committee to ensure that management is not putting their needs over the financial success of the company and its shareholders.
If who you invests with matters, then consider ESG investing.
If you would like assistance in finding sustaining investments that align with your personal principles you should speak to Nexia Financial Adviser, Victoria Habra on VHabra@nexiasydney.com.au. Learn more about Victoria here.
If you would like assistance in relation to developing a retirement savings plan we invite you to speak Nexia Financial Adviser, Victoria Habra on VHabra@nexiasydney.com.au. Learn more about Victoria here.