ESG: Investing your money as a force for good

Have you ever thought about where your money is invested? Is your money invested as a force for good? Or could your money harm our sustainable future?

We ensure that people who invest with GSB Capital are part of our world’s future by taking environmental, social and corporate governance (ESG) issues into account when deciding where to invest. ESG is at the heart of everything we do here at GSB Capital<. We are more aware than ever that our world is changing and changing rapidly.

Is your money invested as a force for good?

We believe responsible investing plays an enormous role in shaping a better world and building a sustainable future. Our core belief is that ESG principles enhance and improve investment returns and real-world results.

With a growing tide of people wanting their money to do well, we must take full responsibility for change as investors and capital managers. Responsible investing is, therefore, at our core, directing everything we do, from portfolio construction to company engagement.

Although you might have invested before, there is a chance you might be new to ESG investing. Given its growing popularity recently, we wanted to share some of the most important factors surrounding ESG investments.

The goal of ESG investment doesn’t differ from the end goal of classic investing, gains and profit. That remains the firm focus. ESG investors, like any other investors, are driven by their returns. However, unlike most other forms of investing, ESG investors also greatly care about the impact of their investment on the environment, the world and the communities we live in.

What are the criteria we use to evaluate businesses for ESG investing?

Social: What is the company’s social impact on the community and the company? We consider factors including racial diversity, equality, hiring practices, inclusion programs, etc.

Environment: Research the impact of the company on the environment. We care about the company’s carbon footprint, the removal of toxic chemicals as part of its production process, using renewable energy, the improvement of its supply chain’s sustainability, etc.

Governance: Knowledge of the company’s board and its push for positive change. This includes everything from diversity in the upper management levels to how top managers interact with a company’s shareholders and respond to them.

What ESG products are available?

More and more investors put their money where they encounter an ESG value proposition. Exchange-traded funds, individual stocks, and mutual funds are some of the most popular ESG financial products that now meet the ESG criteria. We use our strict ESG criteria to offer our customers various ethical offerings and products.

Global ESG investing trends

A UK study showed that money invested in ESG assets has increased by 36% since 2018. Talking volumes about the drive for change. People’s hard-earned money is invested to bring about positive changes. What once was a niche investment decision is now an expected option of most investors. ESG is at the forefront of our offerings, and its imprints are being observed around the world. ESG investment was born in Europe and is rooting into the way we invest here in Dubai. GSB Capital are part of that movement.

Future of ESG Investing

Unsurprisingly, it is our Millennial generation that drives this force for change and makes up the largest share of ESG investments. The Cone Millennial Cause Study examined Millennials’ habits, one of which is most significant, as Millenials prefer products and services from a company they perceive as environmentally or socially responsible. The study also found almost half of them would refuse service or product from a company considered ecologically or socially irresponsible. Moreover, it shows how passionate Millenials are about where they invest their hard-earned money. For them, ESG investments are the right path, and they are expected to continue to invest in these types of investments as they grow their wealth. Shortly after, the younger age groups will follow in their footsteps.

ESG Investing with GSB Capital

We actively manage our ESG funds, keeping a close eye on the organisations we invest in. Here at GSB, we employ rigorous ongoing screenings to maintain ethical standards.

Does ESG invest sound like a cause for change which you wish to be part of? The way we invest must become a force for good. By thinking carefully about how and where we are all investing our wealth, we can influence the strategy and direction of influential companies to evolve into better versions of themselves. We are here to ensure positive decisions are made with your money.

*** Investment values can go down and up. Capital is 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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