Want to get in touch? Send us a text!
In this episode, we will be exploring the topic of ESG: Is this the death or the future of investing?
ESG, which stands for Environmental, Social, and Governance, was initially a good idea when it started. It was designed to encourage companies to be more responsible, sustainable, and ethical in their operations. However, over time, it has been commercialized in an abusive way for profit and pirated for social and political interests.
In this episode, we’ll dive into the definition of ESG, the good intentions that led to its inception, and the potential financial benefits of investing in ESG strategies. We’ll also discuss the drawbacks of the broadness of the ESG categorization, SEC requirements and enforcement, and the contradictions that exist within the concept.
We’ll explore whether the best approach is to invest in companies that are the best overall or the best in a specific industry, and whether investing in solar panels is the way to go. We’ll also discuss the mining footprint for electric cars and how it impacts both social and environmental issues.
Trends with third-party providers who offer ESG ratings will also be discussed, as well as the volatility and black boxes that come with ESG investing. We’ll also explore how the merger of social media-driven issues, political calls to action, and an overly broad definition of ESG are antithetical to the original concept of ESG or SRI in general.
We’ll conclude by discussing the balance between corporate activism and protecting a corporate's profits, the complications caused by index investing and proxy voting, and the importance of individuality and avoiding broad brushstrokes when investing. We’ll emphasize that investing should always be done to make money and based on individual virtues and priorities rather than blindly following the herd.
So, if you want to invest based on your definition of ESG or SRI, based on religious or political beliefs, or based on the direction you think the world needs to go in, that is your right.
________________________________________________________________
Join our Skool Community at https://www.skool.com/ditch-the-suits-9234. You can interact with us, ask questions and get additional resources.
Thanks to our sponsor, S.E.E.D. Planning Group! S.E.E.D. is a fee-only financial planning firm with a fiduciary obligation to put your best interest first. Schedule your free discovery meeting at www.seedpg.com
You can watch all episodes, as well as other great content produced by NQR Media through their YouTube channel at https://youtube.com/@NQRMedia
📧 For more information or to get in touch with us, visit https://www.ditchthesuits.com
👍🏼 You can also follow us on Facebook, Instagram and Twitter at @nqrmedia
______________________________________________________________
About Your Co-Hosts:
Travis Maus has been in financial services for over fifteen years. He is a Senior Wealth Manager and Chief Executive Officer at S.E.E.D. Planning Group.
Steve Campbell has over a decade of experience in the industry and serves as Chief Brand Officer at S.E.E.D. Planning Group.
