ESG: Impact investing is not just for Millennials

While there has been a huge spike (and commentary) about how Millennials are particularly interested in making ethical investment choices, it should be no surprise that this generation is not alone.

ESG, for everyone!

With the ever-increasing threat of climate change and heightened global awareness around racial inequality and social justice, investing in our future has never been more important. Ethical issues require action through sensible investment choices, with younger generations proactively championing ESG investing. And their voice is being heard.

We are seeing greater interest from people over 40, who now understand the power to drive positive change in our society through ESG investment choices. Moreover, many of us are now willing to change our behaviours to protect the environment and help make the world a better place for future generations.

One way to drive positive change is to put our hard-earned money to good use. ESG investments are one way to do this. These investment choices have been available for years, although demand has rocketed, even in recent months, given the latest report from the intergovernmental panel on climate change.

How does ESG investing work?

Firstly, if ESG investing is new to you but want to take the plunge, let us explain how it works. Investing ethically is simply seeking long-term growth possibilities without sacrificing your ethical, social and governance values, whatever they are.

Secondly, the key concept of ESG investing is the ability to remove damaging activities from your investment portfolio, for example, smoking, gambling, weapons and adult entertainment. Although ESG investing is not merely removing the negatives, it’s equally about supporting and being committed to positive movements.

Which ESG financial products are available?

More and more investors are putting their money where they recognize an ESG value proposition. Exchange-traded funds, along with individual stocks and mutual funds, are some of the most popular ESG financial products that match the ESG criteria.

Our take on ESG investing

GSB Capital considers corporate social responsibility to be exactly that; a responsibility of our company to act with full social, environmental and moral regard. This takes on many forms at GSB Capital. Our commitment to ESG-based investing, corporate carbon footprint reduction, investing in our people and global charity initiatives.

With all the ongoing global initiatives across nations focused on environmental protection, social impact and governance, it is clear that ESG will continue to rise and gain popularity with not only Millenials but also various age groups. Many fund providers are signatories of the Principles of Responsible Investing (PRI). The world’s leading proponent of responsible investing. They actively manage their ethical funds, keep a close eye on the organisations in which they invest, and employ rigorous ongoing screening. This ensures ethical standards are maintained. So why not help the future and allow your money to grow?

If you are interested in learning more about ESG investing, please get in touch.

The value of your investments can go down and up. Capital at risk.

Ross Whatnall

Ross Whatnall is CEO and co-founder of GSB and a highly experienced private client director. Ross holds many insurance and investment management qualifications, including CISI, CII, LIBF and CFA. He started his career in private banking with HSBC in the UK before moving to the UAE in 2013 to focus on serving his private clients.

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