ESG Investing

An Environmental, Social and Governance “ESG” style of investing involves a focus on high standards of respect for the environment, society and corporate governance in conjunction with financial factors throughout the investment decision-making process.

ESG is as much about having high standards for conduct as it is about identifying industry leaders that are addressing specific challenges across these pillars. It is widely believed that integrating ESG screening can assist in risk management and potentially support a better determination of a company’s financial performance. As an investor, this means actively seeking out companies and investments that are not only acknowledging but also taking action on sustaining our environment, having respect for employees and communities, as well as being transparent in accountability and corporate governance. The concept here is that these principles are not just about “doing good” but equally being potentially rewarding to corporate success.

At Vahanian & Associates, we believe in a culture of caring and have always strived to approach business in the same manner. In simple terms, we too believe in “doing good”. If you are a proponent of sustainable investing, we understand this is a personal journey and we can support your unique set of beliefs and values while adhering to the pursuit of your investment goals. As an advisory firm, we believe you should feel comfortable voicing what your investments mean to you and what you want from them. We understand every client is different and we strive to tailor our approach to the unique qualities inherent in your core beliefs and personal goals.

If you would like to learn more and speak with us directly about our sustainable investment approach and focus on “ESG” Investing, give us a call or schedule an appointment. You can also learn more about how we engage with our clients and the processes by which we get to know each other here.

Socially Responsible Investing Limitations. Socially Responsible Investing involves the incorporation of Environmental, Social and Governance considerations into the investment due diligence process (“ESG). There are potential limitations associated with allocating a portion of an investment portfolio in ESG securities (i.e., securities that have a mandate to avoid, when possible, investments in such products as alcohol, tobacco, firearms, oil drilling, gambling, etc.). The number of these securities may be limited when compared to those that do not maintain such a mandate. ESG securities could underperform broad market indices. Investors must accept these limitations, including potential for underperformance. Correspondingly, the number of ESG mutual funds and exchange-traded funds are few when compared to those that do not maintain such a mandate. As with any type of investment (including any investment and/or investment strategies recommended and/or undertaken by Vahanian), there can be no assurance that investment in ESG securities or funds will be profitable, or prove successful.

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