ESG: A Sustainable Portfolio Management
The term “sustainable investing” refers to investments made to achieve positive social or environmental impact alongside a financial return.
A sustainable portfolio ensures that your investments are ethically, socially, and environmentally responsible. Therefore, portfolio management is a sustainable investing strategy that seeks to invest in organisations producing goods or services that positively advance society and the environment.
Sustainable investing is a long-term investment strategy considering environmental, social, governance (ESG), and reputational risks associated with different investment sectors. Sustainable investing helps investors achieve long-term financial goals while supporting positive social and environmental change. Sustainable investors might use tools like social impact assessments and carbon footprint analyses to assess the social impact of investments. Sustainable investors tend to focus more on smaller, more impactful companies than traditional investors.
Sustainable investment can potentially create real, positive change in the world. It is, however, a fairly recent phenomenon. It was only in the 1990s that the financial industry began to take ESG issues seriously. The world is changing fast, and new movements like the impact investment movement are growing exponentially. As a result, investors have more opportunities to invest their capital in a way that aligns with their principles and beliefs.
Our ESG portfolio management system can help your company shift from a reactive approach to proactive risk mitigation. This enhances the development of risk mitigation plans and strategy roadmaps, allowing investors and fund managers to evaluate choices better. Contrary to common perception, strong performance and sustainability often go hand in hand. In the long-term outlook, your company with high sustainability value delivers higher performance than those with lower sustainability value. For investors, observing ESG trends tremendously helps identify companies with strategic advantages in managing costs and those that are not simply complying but also being proactive in their sustainability approaches. Lets us help you reach your ESG goal with the XGRC Sustainable Portfolio Management system.
Driving compliance ®, sustainability, and performance in your organisation with XGRC.