Watch the Investment Logic for Sustainability video (http://www.ted.com/talks/ch
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Question
Watch the Investment Logic for Sustainability video (http://www.ted.com/talks/chris_mcknett_the_investment_logic_for_sustainability?source=email#.VGS_pxLLkKF.email). Then perform a few internet searches on terms such as the following:
Sustainable funds
Socially responsible investing
ESG
Environmental, social, and corporate governance
Using resources found in your internet searches, as well as your module resources, respond to the following questions:
What is sustainable investing?
Do you think investors should be concerned with ESG?
Do you think ESG investments can perform better than non-ESG investments? Why or why not?
What type of socially responsible fund would you invest in? Why?
Explanation / Answer
What is sustainable investing?
An investment that is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in social justice, environmental sustainability and alternative energy/clean technology efforts. Socially responsible investments can be made in individual companies or through a socially conscious mutual fund or exchange-traded fund (ETF).
Do you think investors should be concerned with ESG?
Environmental, social and governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. Now a day’s investors have become more conscious due to global warming and el nino effect that the future generation can be sustained using responsible Environmental, social and governance factors
Do you think ESG investments can perform better than non-ESG investments? Why or why not?
Yes in ling term the ESG investments can out perform NON-ESG investments because
the customers are educated and prefer companies focusing on ESG factors
the brand value of these companies will have better recall and profitability can be sustained
in long term these companies will survive and investment in these companies will outperform in long term
What type of socially responsible fund would you invest in? Why?
Generally, these seven areas are the focus of socially responsible investors:
the selection of funds would depend upon the personal beliefs and values will for funds who invest environmental concerns and product safety and impact
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