Millennial investors are motivated to make investments in the organizations that focus on leaving impactful yet positive effects on the environment, along with getting long-term profits. ESG investment funds have been a great support in maintaining a healthy environment and invest in different organizations. Several people add their funds to the ESG investment fund program that is aligned with people’s values. With the collected funds from different investors, the fund manager buys, sells, or holds the investment on behalf of the investors.
How are ESG Investment funds created?
There are various steps involved to create ESG investment funds. From making strategies to different analysis and matching of a suitable company, there is so much more. Having a strategic plan is extremely crucial for ESG investments; you need experience yet creative minds that think for ideas while keeping all the factors in mind. The infographic below tells the detail about the steps involved in creating a sustainable investing fund.
Also see: The ESG Investing Phenomenon #Infographic
The main ESG factor is climate change. With every investment, the investors make sure that there is no adverse effect of it on the climate. Along with climate, other factors to consider are technological as well as societal impacts. The technologies that would work best for ESG include recycling, emission control, waste management, plant-based meat, energy storage solutions, carbon-neutral, renewable energies, sustainable farming software, employee diversity, and a lot more.
Many agencies give advice to different companies, investment fund managers, and government on the bases of their ESG viability.
