QUESTION: ESG and ethical investments: what is ESG and how to take it into account?

An investment strategy based on ESG principles is a capital management approach where an investor evaluates three key factors alongside financial metrics: the environmental impact of the business, corporate social responsibility, and the quality of its corporate governance. To successfully incorporate these criteria into your portfolio, you must start by setting a clear financial goal in specific figures and establishing a strict timeframe. For instance, you could decide to build a capital of one million rubles in five years by investing exclusively in companies with high environmental ratings.

At the second stage, you should break down the global task into intermediate steps and lock in regular account top-ups within your personal or family budget. Determine a fixed amount that you are ready to allocate monthly to the purchase of corresponding assets, whether individual stocks or specialized exchange-traded funds. This approach helps avoid chaotic trades and disciplines the investor, turning environmental and social care into a sustainable financial habit.

To ensure the strategy brings not only moral satisfaction but also results, it is necessary to establish a schedule for monitoring and reviewing the portfolio. It is recommended to check the compliance of chosen instruments with sustainable development principles and assess their yield approximately once a month or once a quarter. Through regular monitoring, you will be able to adjust the share of certain assets in time, account for market changes, and ensure that your capital continues to work in full compliance with your personal ethical guidelines and long-term financial plan.