Can you imagine a time when your kids might say, “You knowingly invested in companies that were polluting the planet, what am I supposed to do with the inheritance, when I have no clean air to breathe?”
This wouldn’t be restricted to just pollution; you will be questioned on whole host of factors that are harmful or deteriorating human life by the day. It extends to include calamities like water scarcity, food shortages, global warming etc. on the environment side. On the social side, it entails harmful products, sweat shop labor, inequality, etc. On the governance side, it can be malpractices, fraud and corruption to name a few.
All these are potential issues on which your kids will raise questions, point fingers at us and there will be no face to hide.
If this thought makes you worried, it’s now time you exercise your vote with your wallet. Invest sensibly in companies that are good corporate citizens. And the way to do it is invest in companies that are leaders in their industry when it comes to caring about their people, the planet, and their company’s purpose and mission. In other words, companies that imbibe ESG principles in all aspects of life.
ESG factors cover a wide spectrum of issues that traditionally are not part of financial analysis, yet have financial relevance. This might include how corporations respond to climate change, how good they are with water management, how effective their health and safety policies are in the protection against accidents, how they manage their supply chains, how they treat their workers and whether they have a corporate culture that builds trust and fosters innovation.
ESG investing allows investors to express their own values and to ensure that their savings and investments reflect their preferences. As long-term investors, we fundamentally believe in the importance of environmental, social and governance (ESG) analysis as a means to understanding both opportunities and risks. The rationale is that, if environmental, social and governance (ESG) factors are ingrained in investors’ thinking, then it’s a win-win proposition for all – we will end up having more valuable companies, more value for end-investors and, ultimately, a more sustainable system.
Each of us can be a ripple that joins together in a wave that moves the ocean of capital. We encourage you to think about how you can turn the tide by investing in the change you want to see in the world.
When you make your next investment, do think about what legacy you want to leave for your kids.
Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.