WCG Impact Series: Conscious Capitalism
Conscious Capitalism, ESG, & Social Justice
By: Brittany Damico, MSc
Business Development Specialist
Unprecedented times require us to change and adapt… how can we go about it?
Human rights, social justice, community impact, inclusion & diversity in the workplace -- Now, more than ever, these topics are at the forefront of people's minds. It is important to note that there are numerous ways to sustain your local, national, and global communities - but one way, in particular, is to vote with your dollars for companies whose goals and initiatives are in line with your own. This is where ESG investing comes into play. ESG is an acronym for Environmental, Social, & Governance and these three non-financial factors can provide an additional layer of analytics and insight into a company’s behavior and impacts.
When you invest in a company with a high ESG score, you are supporting a company that exceeds either their Environmental, Social, or Corporate Governance practices. The Social aspect of ESG most commonly include diversity & inclusion, gender equality, human rights, community involvement, and labor standards. Incorporating these socially-focused ESG screens into your existing portfolio means that you have the opportunity to endorse companies that promote strong socially-conscious ideals. This is where the term 'conscious capitalism' stems from. You have the ability to create a financial portfolio and contribute to the economy in a way that aligns with your values.
In these unprecedented times, the world has changed and is continuing to evolve. Investing is no longer solely a game of measuring alpha and relying on financial facts and figures. The 'who' of a company is becoming just as important as consumers both look for and demand transparency and authenticity. The humanitarian aspects of corporate America are not only more available but under more speculation than in the past. This global shift in awareness presents new opportunities to invest your money in companies with a positive social impact.
Maybe ESG is a completely new concept for you, maybe you've heard the terms 'ESG' and 'conscious capitalism' in passing, or maybe you’re a veteran in the sustainable investing space - No matter where you are on the sustainable investment spectrum, the advisors at WCG have the resources available to help you make a decision that best suits your current situation and beliefs.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual.
An Environmental, Social, and Governance (ESG) fund’s policy could cause it to perform differently compared to funds that do not have such a policy.