I’m interested in exploring how fellow traders incorporate environmental, social, and governance (ESG) factors into their trading decision making process.

In my own experiences, I’ve noticed that while charts, market trends and the like have a place, they often don’t tell the whole story. Like I was tracking a promising tech stock in an emerging market that seemed to be on a bullish trend. But then I stumbled upon reports about its poor environmental practices and regulatory changes that could impact its operations. This made me reconsider my position, as I realized that ESG issues could not only affect the company’s reputation but also made me question whether I want to possible profit from companies falling behind in the environmental arena (which is close to my heart).

I would love to hear from others. Do you actively monitor ESG ratings and reports when evaluating stocks? How do you balance these factors with market movements?

Additionally, I’m curious about whether anyone has special platforms or resources that you rely on for ESG? And have you found that certain sectors are more aligned with strong ESG practices?

I really believe that incorporating ESG factors could lead to more sustainable investment choices, even for more active traders.

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[Sebastian]

You raise an interesting question my friend but I have to say I’m yet to be convinced about dealing in so-called ESG investments, especially in the short term.

I saw a report a recently that said high-scoring ESG stocks had 10-15% lower stock market volatility compared to low-scoring ESG stocks.

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[Steve]

MarketScreener has a useful ESG screener that I’ve used. Here you go – https://uk.marketscreener.com/top-records/ESG/?cf=aGdFWTc2RDBqVDRiajl5UUwzeHQyOUNpVU1BSmZBVFAwOEYyTlVBRjF6SCtYNGhPZ0RaQXNjRXBQbHJzbXBGTDR4ZUpsMWFiNFE5RXFHbTFsOHpneFM2U1NtYStsTGlNSmRacFQxZDlEbzVLM2FlOWU5UUZaMktIT2Y3UXp4eUFJN3RpbzVmenZvL1BOWm5OZ0Z3aElLUjZKaUpFcUJHNys3a2p2LzJuZHV1c0Y1VEkycDhzTDhtYUNsMVhsUjBOMlZibVJURFgvQlBVbEVQTzlNL0ZBdz09

It scores stocks on environment, social, governance and controversies across the UK, Europe, North America, South America, Asia, Africa, Middle East and Emerging Markets. It’s fairly basic but a useful starting point.

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[Lucas]

If you care about ESG why don’t you just avoid any securities that deal in sectors where there’s probably concerns?

So don’t trade shares in companies associated with fossil fuel, mining, tobacco and defence (though that’s a sector with plenty going on at the mo) and so on and so on…

 

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[ChasinPaper]

I couldn’t give a f*** about ESG. Just show me stocks where the money is at.

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[Christian HarrisParticipant]

I understand your ethics regarding investing in companies for the long term, but considering ESG factors when it comes to short-term trading (even day trading) might be prohibitive.

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[Olay_19412]

I see it might just be me that has these ethical concerns! I get what you guys are saying that it’s less relevant for more active strategies but making money from questionable environmental securities still plays on my mind.

Maybe swerving stocks that obviously fall into this bucket is the cleanest (no pun intended) course of action.

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[Lucas]

Yup, that’s what I’d do.

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[Author]

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