The term ‘Environmental, Social and Governance’ or ‘ESG’ is something that is coming up increasingly in conversations with clients.
It covers a wide range of factors that influence an investor’s decision as to whether to invest in a company.
Factors could include a company’s labour practices, product safety, treatment of animals and energy usage.
For a growing number of clients, ESG is something they want us to consider for them to ensure that the companies they invest in are in line with their own values. It is also something that financial regulators are paying greater attention to.
For the team at Phillip Bates & Co, it means adding an extra layer to our already rigorous due diligence processes.
But, from the trend we are seeing, ESG is only likely to become more mainstream over the coming months and years.