In Low-Carbon Investing, Patrick explains how busy investors can implement a Low-Carbon (ESG) investment strategy while earning a competitive return.
by J. Patrick Costello, CFP®
This book is for people who understand that carbon emissions are driving the dangerous phenomenon of global warming, and who wish to do their part in mitigating this risk by lowering the carbon footprint of their investments – without sacrificing investment performance.
The most important new trend in investing today goes by the acronym E-S-G, which involves evaluating a company’s investment potential by scrutinizing its Environmental, Social and Governance practices.
Within ESG strategies, analysts have developed tools for measuring the “carbon footprint” of companies and funds. Morningstar, Inc. just launched a Carbon-Risk assessment tool that measures how vulnerable a company or fund is to the inevitable transition from a fossil-fuel based economy to a lower-carbon economy.
There is a looming problem: As so often happens, ESG has been manipulated by some financial firms to camouflage a continued reliance on fossil fuel company investments, in a process known as “Green Washing.” This book will help investors make sure the high performance funds included in their portfolios use an ESG process that emphasizes fossil fuel divestment and carbon footprint reduction!
But finding low-carbon, high performance funds is not the end of the investment process. The next challenge is building a portfolio: selecting a strategically diversified group of six to twelve funds that together match the unique risk tolerance and goals of each investor.
To help investors navigate the financial services industry, Patrick also explains:
- The attributes of different kinds of investment vehicles
- How to build diversified, risk-calibrated investment portfolios
- How to bypass financial propaganda and stay focused on long term investment goals
- The differences in expertise and accountability offered by various types of financial professionals
- How to avoid hidden fees and unnecessary investment limitations