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Environmental, Social and Governance

Taos is a unique and progressive community.  At Knight Financial Limited we have always been cognizant of this and have made it a part of our practice to assist clients in aligning their investments with personal values. For two decades we've understood the importance of sustainable and responsible (SRI) investing.

What is ESG?

ESG criteria measures a company’s performance as it relates to environmental, social, and governance factors. For example, companies that reduce their carbon footprint, maintain compliant labor practices, or promote board diversity would all fulfill ESG standards. These practices foster company sustainability and, contrary to some concerns, can actually improve profitability. In fact, a 2015 Oxford University meta-analysis concluded that ESG practices positively influence operational performance and stock prices, leading to increased returns for investors.

ESG investing enables individuals to support what they value, like environmental sustainability or gender equality, without necessarily having to sacrifice the financial success of their portfolio. Although this practice can be a powerful tool for clients, we fully understand that many individuals don’t have the time or inclination to research their portfolio investments in such a rigorous manner. Because of this, we assist clients interested in ESG investing in matching their personal values to their portfolio selections. In doing so, our clients’ investments become not just a financial decision, but also an expression of personal values with tangible benefits.

Investing involves risk. Depending on the different types of investments there may be varying degrees of risk. Socially responsible investing does not guarantee any amount of success. Clients and prospective clients should be prepared to bear investment loss including loss of original principal.