ESG Investing: Are Investors Looking to Do Well or Do Good?

The video discusses ESG investing, highlighting motivations such as values and extracting value. It notes the significant growth in ESG investments and presents evidence of their performance compared to traditional investments. The focus on sustainability by consumers and investors is emphasized, along with the dual benefits of doing good and achieving financial success. The outperformance of ESG companies is attributed to risk protection, growth opportunities, and alignment with sustainable development goals.

What is one of the main reasons for the growth in ESG investments?

• They are less risky than traditional investments.

• They offer tax benefits.

• They align with investors' personal values.

• They are mandated by government regulations.

How do ESG investments generally perform compared to traditional investments?

• They perform the same.

• They perform equally or better.

• They perform worse.

• They perform worse but are more stable.

What is one aspect of ESG outperformance?

• Lower market demand.

• Increased regulatory scrutiny.

• Protection against downside risks.

• Higher volatility in stock prices.

Why are ESG companies often well-positioned in the economy?

• They focus on short-term profits.

• They avoid all risks.

• They align with sustainable development goals.

• They have no competition.

What role do the United Nations' sustainable development goals play in ESG investing?

• They increase the cost of ESG compliance.

• They provide a framework for growth opportunities.

• They limit the sectors ESG companies can invest in.

• They reduce the need for ESG investments.