From the Desk of Michael McGinley, Prairie Capital Advisors
August 31, 2022 | Michael McGinley
During the past few years, it has become almost impossible to read anything about corporate America or public investing without hearing about a company or investment fund’s Environmental, Social and Corporate Governance (“ESG”) factors. ESG factors are those that allow investors and consumers to better understand how a company “behaves.”
At its core, this new focus on company behavior prioritizes long-term growth that is both sustainable and socially and environmentally responsible. These factors are gaining in importance in the boardroom and on Wall Street as well as with employees and Main Street consumers.
According to Morningstar, over half of the new money invested in mutual funds in Europe during 2021 went to “sustainable” focused funds. The United States appears to be experiencing similar trends, which means that any company that wants to be relevant going forward should be evaluating its ESG factors.