The ABCs of ESG Investing

If you’ve watched any network news programming in recent months, you may have caught a segment on ESG Investing, an emerging acronym (and trend!) as corporate social responsibility becomes more readily embraced. In this blog, we’ll go over the ABCs of ESG Investing, explaining what it entails, why you should consider adopting some of greening strategies and how we can help implement them.


A: Acronym Definition

The acronym ESG stands for Environmental, Social and Governance, three factors investors consider when recommending stock options to their clients. Research is showing that ESG investing will continue to gain in popularity for a slew of reasons, not the least of which is the satisfaction the investor feels when investing in a company that believes in and supports something for the greater good. With an increased focus on things like corporate social responsibility, ESG companies are expected to reap benefits, improving their brand and public perception, not to mention their bottom lines.

 

So, what does this mean for your organization? And are there any initiatives you could implement? Or better publicize?

 

B: Big Picture

Some factors ESG investors consider as they make recommendations to their clients include the following:

  • A company’s climate change or emissions policies: We’ve touched on this in the past. Things like taking a climate pledge can help improve the public’s view of your organization while also helping to reduce emissions and energy expenses. Adding the support of ESG investors will only help your brand gain credibility and financial support if financial analysts’ predictions are correct.
  • Usage of renewable technologies like wind and solar power: As mentioned above, when consumers are making purchases, they are increasingly considering how a company operates. Green consumers have been discussed for a few years now—those individuals who proclaim that they’d pay more for sustainable products. Now, that premise is being taken to the next level, with consumers investing in organizations who embrace things like sustainability.
  • Relationship with the United States Environmental Protection Agency (EPA) and other environmental regulatory bodies: The EPA offers a Combined Heat and Power Partnership Program, a nod to their support of the efficient, economical and environmental way of simultaneously generating heat and power. Offered by our partner, Dalkia Aegis, EDF Group, this offering is increasingly gaining in popularity by earth-conscious investors.

Could going green help your organization to find more green—from like-minded individuals?

 

C: Contact Us to Get Started

Much like ESG investing, we are on the cutting edge of energy trends, offering existing and emerging solutions like EV Charging and Smart City integration. No matter how sweeping a change you’re interested in making, we can help. Contact us today to get started.