ESG stands for Environmental, Social, and Governance and represents a growing movement from investors who care about more than just profits.
ESG investing can otherwise be known as ethical investing, sustainable investing or impact investing. Such approaches to portfolio constructions create a positive impact and influence change at a corporate level by engaging with companies to improve investment outcomes. Understanding the ESG principles of the active ETF you are invested with is important, so please read further on this and refer to your investment product PDS for further information.
ESG Factors and Principles
Environment factors include energy use and impact on climate change, waste, pollution, greenhouse gas emissions, animal treatment and natural resource conservation.
Social factors consider a company’s relationship with their stakeholders including health and safety, employee, relations, diversity and working conditions.
Governance includes fair voting, not engaging in illegal behaviour, avoiding conflicts of interest and the proper use of accurate and transparent accounting methods.
eInvest provides actively managed ETFs that use ESG metrics at the centre of their portfolio construction in both equity and fixed income.
The eInvest Better Future Fund (Managed Fund) – IMPQ – has clearly demonstrated that ESG does not hurt performance.
Our actively managed fixed income ETFs – ECOR (Core Income) & DHOF (Hybrid Opportunities) – also use ESG data. With expert managers to navigate our historic low interest rate environment, they avoid dodgy ESG companies and have adopted a low duration exposure.
ESG isn’t the only data you need to build a great portfolio, traditional financial metrics are still critical. However, ESG brings risk management to the table by avoiding stocks with poor outcomes and as an investor, it allows your capital to be invested in a manner consistent with your values. This is why ESG has been such a hot topic and why it will continue to grow in importance.
At eInvest, we engage with ESG initiatives regularly as a core element of our business operations. Our aim is to educate and engage with investors on ESG investing, through webinars, articles and social media content to share knowledge and insight.
We participate in recycling programs in our offices and source electricity that we consume from 100% renewable energy. Our staff also participate in mandatory ESG training each year to ensure we continue to improve our performance and support ESG initiatives in both our daily activities and our investment products.
eInvest has committed to a tree planting initiative with OneTreePlanted to plant a tree in Australia for each client who invests in our funds (IMPQ, EIGA, ECOR and DHOF). This initiative helps to work towards OneTreePlanted’s goal of global reforestation and eInvest is very excited to be a part of this initiative as it aligns with our ESG approach and outlook.
eInvest’s fund IMPQ was awarded Finder Green ETF of the Year 2021, and the Better Future Trust is a certified Responsible Investment product.
eInvest is also a supporter of F3 – Future Females in Finance, an organisation founded by eInvest Managing Director Camilla Love, which encourages gender diversity in the financial services industry.
eInvest, as a Perennial Partner is: