Mar 11, 2023Liked by Dana Miranda

I’m glad to hear you say these things. I’ve wondered for some time what ESG really meant in investing. What about investing in companies that align their strategic goals with UN’s Sustainable Development Goals?

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Thanks! Hope this clears up some questions :)

Investing in companies aligned with the UN goals falls under impact investing, which is when investors choose companies to invest in based on personal criteria for the social/environmental impact they want a company to have. The difference with ESG is that ESG criteria is a method to measure a company's expected performance, so it remains focused on profit. Impact investing lets you eliminate companies that don't align with your personal criteria, regardless of the financial impact, so building a portfolio this way doesn't optimize for financial gain.

As long as you trust that companies are meeting the UN criteria in good faith, that can be a way to direct your investments in line with your values. You can find firms that build funds specifically around UN Sustainable Development Goals; look for a sustainability-focused ETF if you want to avoid the higher fees of a managed fund.

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