When it comes to investment planning, we understand that every client is unique. While most of us are familiar with discussions around personal objectives such as goals, time horizon and comfort towards risk, ESG and Sustainability considerations are becoming an increasingly important factor in designing and implementing one’s personal investment strategy.
ESG brings Environmental, Social and Governance considerations into the investment process. Sustainable Investing is another term used to describe this framework; relating to companies and how they manage and mitigate their risk in these areas. Many portfolio managers are now including ESG themes as an intentional aspect of their investment analysis process. Managing risk in these areas is becoming an integral step in assessing a company’s long-term success and viability.
As with any asset class or fund objective, there are a wide variety of ways that different funds and managers incorporate these themes into their portfolios. While some funds might broadly incorporate ESG considerations, others have specific focuses such as climate change, clean water or workplace diversity.
At Sequoia Financial, we are committed to ongoing education. While many of us have been in the industry for decades, it is our responsibility to adapt to a changing environment and keep up with our clients’ needs and goals; often over multiple generations. While our focus on long-term and holistic planning will never change, we recognize the importance of new information and research. It is clear to our firm that this will be an important theme in how company risk is assessed moving forward, and we plan to adapt and incorporate it into our investment process and the fund companies that we align ourselves with.
As investment professionals, we share the belief that companies and industries that lead in socially aware governance, advanced innovation and technology will continue to be highly regarded and rewarded for their efforts. On a personal level, our firm members are passionate about these values and are excited to work with our clients as these themes increasingly impact our investment and planning process.