ESG QUIZ

What is your ESG philosophy?​

What is your ESG philosophy? Our fun ESG Quiz questions below will get you thinking about your values and priorities.

ESG Quiz

Answer these ten questions about your environmental, social and governance – ESG – values and philosophy. Dig deeper into what you care about most.

Your ESG Philosophy​

Environmental, Social and Governance (ESG) investing has grown rapidly. Importantly, ESG is not one thing and so it can be confusing and sometimes, controversial. ESG is a spectrum of options. It can mean excluding investments on moral grounds. It can mean reducing ESG risks to returns. And it can mean investing to make a positive impact on the world.

 

Before you embark on your ESG journey it is important to have clarity on your goals. Are you concerned about risks to your returns and/or impact of your investments? Are you willing to invest in any sector, or do you want to take some sectors off the table? We hope your answers to this quiz help to give you more clarity.  

Mostly As

If you answered mostly As to the quiz questions, it is likely that you take an active interest in companies’ ESG values and their impact on society and the environment. You might think that companies should publish non-financial disclosures about their activities. At the minimum, you might believe that a company should manage ESG risks to their operations and profits. At the maximum, you might expect companies to try to have a more positive impact on their employees, consumers, investors and the environment. Socially and environmentally responsible companies might not always offer the highest short-term returns, but you might be more focused on long-term returns.

 

If this sounds like you, some further questions to consider are: What specific ESG values and goals are important to you? Do you want to exclude companies from your investing and consuming that do not fulfill these values and goals? Or do you want to achieve your goals by investing in companies that are top performers in their sector or “best in class” when it comes to your ESG values and goals (such as reducing carbon footprints, or reducing pollution and waste)?

 

Next, read our ESG for Beginners guide, which will fill you in more on ESG. You can also read our guides to ESG and sustainable investing and climate investing 101 for inspiration for your next steps in your ESG journey.

Mostly Bs

If you answered mostly Bs it is likely that you are not persuaded by ESG. You may be a free market traditionalist for whom companies’ primary role is to make profit and increase stock prices. Possibly, you are concerned you will lose on returns if you use an ESG framework. It is also possible you are concerned about losses to the economy if companies travel too far along a path of ESG and away from profit. Some ESG skeptics are also concerned that ESG is encouraging company boards to get too involved in liberal domestic politics (called “woke-ism” by critics.) This might be a turn-off for you.

 

If this sounds like you, some further questions to consider are: Whether you still expect companies to manage ESG risks to profits? For example, should they manage the risks of government environmental regulation (E) to their profits? Should they manage the risks of conflict and human rights (S) to their profits, for example, by staying away from countries such as Russia? Should they appoint diverse and independent company board members (G) so that decision-making processes are rigorous?

 

If so, some ESG products are oriented to ESG risk management and could be interesting to you. Our article on debunking common myths about ESG might allay some of your concerns, or spark more questions! You can also read more about how regulators are starting to set properly defined ESG standards to protect investors’ fiduciary interests and to give companies a common set of standards to work to.

 

Finally, note that not all ESG is a recent response to climate and social change. The history of ESG investing is rooted in the world’s major religions. In the history of ESG investing, you might still find some principles that interest you.

Mostly Cs

If you answered mostly Cs to the quiz questions, you are undecided on ESG. Probably, you’ve heard enough about ESG to be curious, but you still wonder what it is and if it is trustworthy? You might have heard about greenwashing concerns with ESG. If so, it is not something you would jump into without a lot more information. Many people are in this boat. At a minimum, you might expect government regulators to define ESG and companies’ responsibilities. You might also believe that it is most important to have diversified investments.

 

If this sounds like you, some further questions to consider are: What ESG values or goals are important enough to you to investigate further? In a large investible universe, is there anything you want on or off the table? Like the group that answered mostly Bs, do you still expect companies to manage ESG risks to profits?

 

Our ESG FAQ and ESG for Beginners answer some basic ESG questions. Our blog on how to spot the signs of ESG greenwashing might help you to think further about the types of ESG information that you need to make decisions. You can also read our guides to ESG and sustainable investing and climate investing 101 for inspiration for your next steps in your ESG journey.

 

Finally, you can also check out our video page for quick videos explaining ESG.

ESG Quiz Conclusions

We hope you enjoyed the quiz! Why not test your knowledge of clean energy next? Our factual and fun article will challenge you.

 

Whatever your ESG philosophy, it is always important to seek professional financial advice and to independently research and verify all the information presented to you. When it comes to ESG, there is a lot of marketing and branding. It is very important to read the fine print. The body that protects U.S. investors, FINRA, published these tips and advice on ESG to help you avoid common traps.

 

ESG Hive never offers investment advice. Information on this site is not investment advice. We are an educational community for ESG. Please refer to our disclaimers for further information. We hope you enjoyed the quiz and it got you thinking further.

 

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