{"id":16839,"date":"2021-10-20T00:55:51","date_gmt":"2021-10-20T00:55:51","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=16839"},"modified":"2021-10-19T20:22:52","modified_gmt":"2021-10-19T20:22:52","slug":"the-abcs-of-esg","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2021\/10\/20\/the-abcs-of-esg\/","title":{"rendered":"THE ABCs OF ESG"},"content":{"rendered":"

By Jenni Riley, MBA,\u00a0FPQP\u2122\u00a0\u00a0<\/em><\/p>\n

\"\"
Jenni Riley, MBA,\u00a0FPQP\u2122, is Financial Paraplanner Qualified Professional\u2122\u00a0and Director of Operations at HAZLETT WEALTH MANAGEMENT, LLC<\/figcaption><\/figure>\n

Investors have become increasingly aware of sustainability issues and want to put their money where their values are. ESG and sustainable investing involves much terminology that can be interpreted differently and continues to increase as the popularity of this subject grows. One could easily get lost, so here is a \u201croad map\u201d of sorts for the most commonly accepted definitions.<\/p>\n

    \n
  • ESG \u2013 Refers to Environmental, Social + Governance issues. It is not a separate asset class but can be used to find investments for an individual\u2019s preferences and priorities.<\/span><\/li>\n
  • Environmental (E) \u2013 Includes pollution, water, energy efficiency, and climate change.<\/li>\n
  • Social (S) \u2013 includes human rights, gender + diversity, labor standards, and community relations.<\/li>\n
  • Governance (G) \u2013 includes board composition, executive compensation, lobbying, audit structure, and political contributions.<\/li>\n<\/ul>\n

    There are different approaches to incorporate your views of ESG into your investing strategies.\u00a0Sustainable investing emphasizes more material ESG issues, whereas impact investing emphasizes intent to generate measurable impact while seeking a financial return.<\/p>\n

    Socially responsible investing (SRI) is similar to ESG but can have a different meaning. Professionals use SRI to filter out morally questionable businesses and not necessarily seek opportunities using the ESG factor analysis used in sustainable investing.<\/p>\n

    Some of the challenges financial professionals have seen when seeking ESG investments:<\/p>\n

      \n
    • Data Quality \u2013 ESG is reported primarily by the companies themselves, which can reduce reliability.<\/li>\n
    • Greenwashing \u2013 marketing tactics used to deceptively promote the appearance of being environmentally friendly or portraying their funds as having strong positive ESG outcomes when that is not the strategy\u2019s primary focus.<\/li>\n
    • Coverage and Consistency \u2013 Large companies have more resources to consistently and comprehensively report their ESG metrics, so smaller companies may be overlooked.<\/li>\n<\/ul>\n

      There are increasing investment options that have an ESG focus and organizations working to solve the challenges. Investors are finding you don\u2019t always have to choose between values and returns.<\/p>\n

      HAZLETT WEALTH MANAGEMENT, LLC is independent of Raymond James and is not a registered broker\/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA\/SIPC. Investing involves risk, and you may incur a profit or loss regardless of the strategy selected. Past performance may not be indicative of future results.\u00a0Some strategies may not be appropriate for all investors. Contact a qualified professional regarding your situation before making any investments. 675 Sun Valley Road, Suite J1 + J2 Ketchum, Idaho 83340 208.726.0605. HazlettWealthManagement.com\u00a0<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

      By Jenni Riley, MBA,\u00a0FPQP\u2122\u00a0\u00a0 Investors have become increasingly aware of sustainability issues and want to put their money where their values are. ESG and sustainable investing involves much terminology that can be interpreted differently and continues to increase as the popularity of this subject grows. One could easily get lost, so here is a \u201croad […]<\/p>\n","protected":false},"author":1,"featured_media":15233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[2,16],"tags":[],"class_list":{"0":"post-16839","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-commentary","8":"category-finance"},"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/16839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=16839"}],"version-history":[{"count":1,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/16839\/revisions"}],"predecessor-version":[{"id":16846,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/16839\/revisions\/16846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/15233"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=16839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=16839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=16839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}