How to pair your investments with your values and still come out okay

Edward Kerschner, Chief Portfolio Strategist

You don’t necessarily have to compromise performance to invest in companies that are environmentally friendly, socially responsible and have good governance.

A company that is kind to the environment, fair to its employees and those it does business with and that has good governance is a well-run company. In turn, well-run companies are in a position to offer sustained growth. While investing with your values used to be seen as somewhat of a tradeoff for reduced performance, that does not have to be the case. Watch Ed Kerschner discuss what to look for when investing in ESG (environmental, social and governance).


The views expressed are as of October 2016, may change as market or other conditions change and may differ from views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that any forecasts are accurate.

International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different financial and accounting standards. Risks are enhanced for emerging market issuers.

ESG factors may cause a Fund to forgo certain investment opportunities and/or exposures to certain industries, sectors or regions.

For more information, please see: “Why ESG? ESG is a solid framework; Considering other factors may help,” Columbia Threadneedle Investments, October 2016, at: http://www.columbiathreadneedleetf.com/emergingmarkets/pdf/literature/deck/why_environmental_social_and_governance_esg.pdf

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