Sustainable investment is a powerful tool for creating positive change in society. It offers a mechanism for markets to deploy and reinvest capital for a specific purpose, thus creating the possibility of scaling and magnifying social and environmental impact.
ESGinvestment evaluates companies based on criteria related to being prosocial, environmentally friendly and good corporate governance. Philanthropy or charitable giving is the act of giving money without expecting any kind of return.
Sustainable investment is one that seeks to generate positive social and environmental effects and, at the same time, obtain competitive financial returns. Sustainable investing is important because it can mitigate investment risk and help companies play an active role on key issues such as climate change and social justice. Sustainable investors seek opportunities and financial returns in companies with high environmental, social and government priorities. ESG factors and sustainability are closely related. ESG analyzes the way in which a company's management and stakeholders make decisions; sustainability considers the impact of those decisions on the world. Your Merrill advisor can help you customize your sustainable investment strategy based on your preferences and motivations.
Taking social concerns into account when investing, especially as part of a comprehensive ESG investment strategy, can protect investments. This material does not take into account the investment objectives, financial situations or particular needs of the client and is not intended to be a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. The social factors to consider in sustainable investment include the strengths and weaknesses of a company when it comes to addressing social trends, work and politics. Whether ESG investing is right for you depends on whether you want to combine your values with your investments.