Understanding ESG Investing Principles

The video explores the concept of impact investing, questioning whether investments exacerbate societal issues like climate change and systemic racism. It traces the history of socially responsible investments, highlighting the evolution to ESG criteria, which assess environmental, social, and governance factors. The video discusses the financial viability of ESG investing, noting that it doesn't necessarily compromise returns and may offer lower risks. It also provides guidance on starting ESG investing and addresses viewer comments on related topics.

What is the main concern when considering the impact of investments on society and the planet?

• The cost of profits on society and the planet

• The ease of accessing investment platforms

• The complexity of investment strategies

• The potential for high returns

Which religious groups in colonial America were early adopters of impact investing principles?

• Methodists and Quakers

• Catholics and Baptists

• Lutherans and Presbyterians

• Jews and Muslims

What does ESG stand for in the context of investing?

• Ethical, Sustainable, and Green

• Equity, Security, and Growth

• Economic, Social, and Global

• Environmental, Social, and Governance

Which factor is NOT part of the ESG criteria?

• Governance

• Social

• Technological

• Environmental

What historical movement is cited as an example of protest divestment?

• The Women's Suffrage Movement

• The Anti-Apartheid Movement

• The Civil Rights Movement

• The Environmental Movement

What did the 1986 U.S. Congress decision regarding South Africa result in?

• Increased investment in South Africa

• A rise in South African stock prices

• A billion-dollar loss in capital for South Africa

• The end of apartheid immediately

According to a Morgan Stanley study, how do ESG funds compare to traditional funds in terms of financial trade-offs?

• ESG funds are riskier

• ESG funds have higher returns

• There is no financial trade-off

• ESG funds have lower returns

What is a common misconception about impact-oriented funds?

• They are more expensive than traditional funds

• They are riskier than traditional funds

• They are less popular than traditional funds

• They have lower returns than traditional funds

Which tool is mentioned for comparing ESG ratings of stocks?

• Yahoo Finance

• Morningstar

• Bloomberg

• Sustainalytics

What was a significant trend for ESG funds in 2020?

• Record-breaking inflows from investors

• Higher fees compared to traditional funds

• Lower returns compared to previous years

• Decrease in popularity