According to a statistic on CNBC “about one-third of millennials often or exclusively use investments that take ESG factors into account.” There is a fast growing interest around ESG (Environmental, Social, and Governance), especially among millennials, who are driving ESG as a priority for organizations. Though, interest in ESG isn’t limited to socially conscious millennials. Many firms are taking an approach to adopt sustainable investing. ESG provides meaningful value to investments. Many are following suit to align their money with their social values. Given the growing force of ESG in the finance industry today it brings to question: how do you get started to implement ESG?

Getting Started with ESG

To get started it’s important for firms to understand how sustainability is the leading factor for building foundational ESG practices.

  1. Plan and Establish ESG objectives and issues according to the firms goals after an extensive, thorough assessment. Discover which ESG topics should be prioritized, and define a methodological approach for action.
  2. Implement your objectives and goals with a structured management framework. Think about how to optimize your efforts towards industry leadership in ESG
  3. Accurately report data, constantly monitor existing planning to stay on track towards ESG goals. According to Aetna, “Set a regular cadence of communication and updates for key stakeholders to continuously evaluate goals, update data, and compare best practices. By constantly monitoring your plans, you can stay apprised of adjustments that might be needed to stay on track toward your goals.”

ESG is a trending newfound concept but, an approach into it doesn’t have to be complicated. Firms complying with ESG outgrow their competitor. Not only does the environment benefit, but financial sectors are bound to thrive. Though, this list is barely scratching the surface on what implementing ESG entails. The best practice would be to delve into ESG by initially establishing a strategy and framework in place. As time passes, we’ll see how ESG practices become more commonplace in the financial world.