Lisa Langley: Women are actively seeking progressive investment opportunities that can contribute to socioeconomic prosperity
Women are shaping the future of investing by leading the charge in prioritizing ESG factors when making investment decisions. Photo by Getty Images/iStockphoto Women are innately the S and the G when it comes to environmental, social and governance (ESG) investing.
Advertisement 2 This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada.
Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada.
Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword REGISTER TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors A bold statement indeed, though, factually, women are shaping the future of investing by leading the charge in prioritizing ESG factors when making investment decisions. Certainly, women are nearly twice as likely as men to consider ESG factors.
FP Investor By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Here’s why: As women, we are uniquely attuned to the impact these factors have on our daily lives and understand the power of investing in areas that have a measurable effect.
A growing number of women don’t only care about generating quick and meaningless wealth, but carefully consider the socioeconomic implications of every investment decision they make.
Indeed, a new wave of Canadian women is breaking free from financial dependence, particularly among millennials, as they earn higher incomes and maintain control of their finances even after marriage. They actively seek progressive investment opportunities that can contribute to socioeconomic prosperity.
Article content This advertisement has not loaded yet, but your article continues below.
Article content With our growing power to invest, we scour the market for businesses that align with our values and are fearless in putting our money where our mouths are by investing in companies that regard environmental sustainability, social justice and good governance.
To create a more equitable world, protect human rights and combat the effects of climate change, we know it’s essential to shift our focus toward sustainable investing. Women crave purposeful investment opportunities, especially as we have experienced injustice firsthand. We must prioritize sustainable investing to ensure long-term value in our investments.
Women hold the key to the S and G in ESG because of our innate ability to see the bigger picture and obtain diverse perspectives. We know that social impact is vital, since it ensures companies meet the needs of all genders, and governance ensures that companies will operate on policies based on fairness and diversity.
This advertisement has not loaded yet, but your article continues below.
Article content As mothers, daughters, sisters and community members, we want to make investment decisions that benefit those we care about and the planet we share. We understand that the greater purpose behind ESG investing is that we’re investing in a brighter future, where purpose and profit are intertwined, and socioeconomic prosperity is the norm.
ESG investing is most commonly seen as a way to ensure our planet’s survival, but it has an even more profound significance for women. As the primary caretakers of our families, we’re acutely aware of how climate change disproportionately impacts our daily lives since women and children are 14 times more likely to die from a climate disaster than men, and an estimated 80 per cent of women get displaced by climate change.
This advertisement has not loaded yet, but your article continues below.
Article content Socially, women often bear the brunt of economic downturns. It’s a cruel reality that we are usually the last to get hired and the first to get fired. Even if we possess the same qualifications and skill sets as men, we are 30 per cent less likely to be considered for jobs, according to Pompeu Fabra University in Barcelona, and the odds are stacked even higher against mothers at a staggering 36 per cent.
As for governance, women understand that pervasive gender disparities have long plagued various aspects of our lives. By investing sustainably, women can invest in companies that promote inclusive and equitable practices and further advocate for women-owned and -led businesses.
Studies have shown that 52 per cent of women are more likely to invest in businesses with a positive social or environmental impact compared to only 44 per cent of men. Women are increasingly looking to reshape the distribution of wealth and enact meaningful change over profits.
This advertisement has not loaded yet, but your article continues below.
Article content Impact of the ‘S’ in ESG found lacking in the real world Shopify’s Tobias Lütke: ESG is a good idea that’s now ‘broken’ Better governance, oversight reasons to remain optimistic on ESG This doesn’t mean that women will sacrifice performance. Companies can no longer ignore ESG factors as the world faces unprecedented challenges. Turning a blind eye to these issues is irresponsible as well as a detriment in the long term. Incorporating an ESG framework provides a comprehensive view of a company’s mission, principles and practices and enforces risk and reputation management.
As more women take on leadership roles, gain wealth and demand more from our investments, we can continue the momentum of ESG investing, drive positive change and transform systems so the world can benefit us and future generations.
Lisa Langley is the chief executive and founder of Emerge Canada Inc.