(WTNH) — If you’re looking to make some investments this year, it can be a challenge finding those that are in line with your own values.
We are stretching your dollar with how to tell whether your portfolio is as “socially responsible” as you’d like.
Socially responsible investing is important to a lot of people, and businesses who simply want to invest in companies that are reflective of their own values! Maybe those that have a positive impact on your community in some way.
Financial Consultant John Caserta says there are two myths to dispel when it comes to “socially responsible investing”, or ESG as it’s called, which stands for Environmental, Social and Governance criteria.
He says the first misconception is that it won’t benefit you much financially.
“Investors think that they have to sacrifice performance…And that’s just simply not the case. There are a lot of studies done by a research firm that companies that have socially responsible guidelines, or these ESG guidelines, perform just as well, if not better than their counterparts that don’t.”
He also says you may not think there are a lot of options out there, which is the second misconception. He says years ago there may only have been a handful, but now there are hundreds.
If you need help, finding companies that are in line with your values look for the “sustainability score” or have a conversation with your investor to be clear about the type of business you want to support.