Newsletter 2023 V2 Article - Financial & Investment Services

For many people, sensible investing means choosing companies that not only are likely to perform well, but also act in a responsible manner. Formerly referred to as Socially Responsible Investing, the modern term is Environmental, Social, and Governance (ESG) investing – meaning aligning your portfolio with your values. Let’s review some examples of ESG:

Investable Food 
The food sector has become a crucible of demographic pressures, environmental action, and technological innovation. How should investors navigate the changing landscape of risk and opportunity? As people get richer, they add protein to their diet. They also tend to become more environmentally conscious, which fuels demand for alternative proteins. But finding funds that offer true exposure to the future of food is not straightforward.

Investable Water 
Water is becoming scarcer: Its use is growing, and pollution and climate change are stressing water systems. Investors must balance emerging risks, opportunities, and the potential to drive positive impact. Water scarcity poses a bigger short-term danger to some industries than carbon risk. Yet investors have paid comparatively little attention to it. How should they think about measuring water risk?

Investable Health 
Aging populations and emerging health threats are straining healthcare delivery and adding to pressure on costs. Investors are using data to help increase access to healthcare and uncover emerging opportunities.

Investable Community 
The drive for greater diversity, better equity, and more inclusion is shaking up how board members are selected, how companies pay 
and promote, and how whole industries function. Investors are using data to engage.

Investable Energy
As governments and private companies focus on lowering greenhouse gas emissions, the energy sector faces a period of protracted uncertainty. Investors are responding, both to carbon risks and climate opportunities. Some governments are wavering in the journey to net-zero emissions. But the financial markets continue to do their job. Investors seeking opportunities in emerging climate technology can find them in the venture capital market.

Sustainable Investing 
Investors who apply exclusion remove issuer from their portfolios based on certain products or services, and industry or corporate behaviors, like major controversies. Investors who limit ESG risk use ratings to understand a company’s exposure to certain material ESG issues. Investors who use ESG information to seek opportunities apply data to identify companies that are sustainability leaders. Investors who target sustainability themes identify investments that stand to benefit from secular trends toward greater sustainability in the way we live and work.

© Copyright 2023 Broadridge Financial Solutions, Inc. *Non-deposit investment products and services are offered through CUSO Financial Services, L..P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor.  Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members.

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