A focus on environmental, social and corporate governance (ESG) investing means every investment in your portfolio will be measured against real-world benchmarks.
If you opt for an ESG portfolio, it will invest only in companies that meet high standards in terms of their environmental impact and social behaviour, both internal and external. You’ll also be investing only in companies that meet high standards of corporate governance, in terms of how they make decisions and follow the law.
ESG investing usually steers clear of certain sectors, such as gambling, tobacco, and weapons. It is possible to incorporate ESG principles into other investment portfolio strategies, too.