For years, socially conscious investment meant aligning your investments with your personal principles. Socially conscious investors could target green technology innovators or divest from fossil fuels or gun manufacturers. The ultimate goal was to get the best return while supporting causes you believe in.
The recent rapid growth of environmental, social, and governance (ESG) investing adds a new dimension. The financial industry’s traditional assessment of risk has broadened in the 21st century.
According to ESG principles, the effects of climate change and the development of alternative energy make fossil fuel companies a risky investment. That’s prompted financial professionals to steer their investors away from some of the large international oil and gas corporations that have been a major part of traditional investment funds. ESG investment isn’t motivated by doing good in the world; it’s based on the idea that sustainability is good business.
The solid business foundations of so-called stakeholder capitalism aren’t always understood. In fact, some of the energy businesses now associated with heightened financial risk are mounting campaigns to undermine ESG investment as flaky, partisan or even sinister.
Facing those challenges will require a proactive response from the ESG sector and its partners.
Orange Orchard is an experienced environmental public relations agency specializing in sustainable industries where companies are making a difference and succeeding by doing the right thing. We help clients cut through the confusion clouding sustainable business with strategic media placement, expert content marketing, brand awareness and thought leadership. If you’d like to learn more about how Orange Orchard can help your ESG fund stand out in a rapidly changing economic climate, call (865) 977-1973 or contact us online.