Courtney Ranstrom partner and Lead Financial Planner at Trailhead Planners, was recently interviewed by Morningstar Investments and discussed how she helps clients implement ESG factors in their investment portfolios and invest in a sustainable and socially responsible manner.
You can read the whole intereview here: Morningstar Interviews Trailhead Planners' Courtney Ranstrom on ESG
Here's a few tidbits:
Morningstar: Do advisors have a responsibility, fiduciary or otherwise, to consider ESG risks when investing for clients?
Courtney: I think advisors have a responsibility to evaluate risks associated with the securities in which they invest. ESG risks should be a component of their overall evaluation. However, this area is still relatively new with disagreements on how to include ESG. More work will need to be done to fully integrate ESG risk factors, and how to quantify them, into investment analysis.
Morningstar: How do you integrate ESG into your practice?
Courtney: We don’t require that our clients tilt toward ESG investments, but we offer it for our clients who want it. We get a lot of demand for it, particularly with our Portland-based clients. Personally, I believe investors need to push companies to be more conscious of their impact on the environment, the long-term environmental risks their businesses face, and their responsibility in creating work environments that are profitable for the company while being representative and inclusive.
How does discussing ESG help your clients?
Courtney: Talking about ESG factors with clients is a great way to get to know them, their goals, and their priorities. It also helps them learn about the investing process and feel empowered in the decisions they are making with their investments.
Once again, you can read the rest of the article here: Morningstar Interviews Trailhead Planners' Courtney Ranstrom on ESG
Additionally, Courtney was quoted in a separate Morningstar article titled, " Investors Force Firms to Take ESG Seriously".
Courtney Ranstrom, co-founder of US financial advice firm Trailhead Planners, says investors need to push companies to be more conscious of their environmental impact. Advisers have a key role in this, [s]he says, and should be looking at how to analyse ESG risk factors and incorporate them into their investment processes.
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