Is ESG investing right for you?

ESG (Environmental, Social and Governance) investing refers to a class of investing that is also known as “sustainable investing.” This is an umbrella term for investments that seek positive returns and long-term impact on society, environment and the performance of the business.  On today’s episode of the Wiser Roundtable Podcast, the team discusses the history of ESG investing, if this type of investing is effective or a marketing ploy.

Listen on Apple Podcasts or watch on YouTube:

Brad starts the show by explaining how investors use Environmental, Social and Governance (ESG) factors to invest. He explains the history of ESGs and responsible investing. Casey describes what types of practices fall under each category.

Next, the team describes how companies are rated on ESG characteristics. The longer companies have participated in ESG behavior, the higher the rating. The group discusses if this type of investing really makes a difference or does it just make investors feel better.

Is Europe ahead of the US in terms of ESG? The group discusses if the data supports whether or not these firms are actually ESG friendly. There is no regulation behind the marketing term ESG.

Tesla was added to the S&P late last year and had a large rate of return. The team discusses how this impacted ESGs for the year. Potentially, ESGs are a marketing ploy and a way to charge more for funds. ESGs need to be measured and evaluated over the long-term to ensure investors are not overpaying for these funds.


0:00 Show begins

1:51 What is an ESG?

5:45 ESG rating system

7:31 Does ESG investing make a difference or just make us feel better?

14:37 Is Europe ahead of the US with ESG’s?

17:21 Who really wins with ESG?

21:40 What about Tesla?

25:00 Financial advisors need to do their due diligence


Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

Learn more about Wiser Wealth Management and connect on social media:

Twitter, Instagram, Facebook, LinkedIn, and YouTube.

Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.


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