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Build a Better Strategy with ESG Investing and Analysis

Nestlerode & Loy offers ESG investing for clients who want to support socially responsible actions through their investments. We vet funds and ETFs for environmental, social and governance guidelines using Morningstar sustainability to find the best investments.

Historically, socially responsible investing eliminated companies from their investment universe that violated environmental, social or governance guidelines. In recent years, ESG investing is focused on stocks and bonds that work positively towards these measures. Many endowments, foundations and rating companies are gearing their portfolios and ratings to include or be guided by ESG guidelines so there are robust options for investing for these parameters.

What Is ESG Investing and Analysis?

ESG stands for environment, social, and governance and takes into account non-financial factors that aren’t required by the SEC in a company’s financial reports. 

ESG analysis can help you determine whether or not a company is actively taking steps to mitigate the impact of these factors as sustainability, social issues, and evolving regulations become increasingly more important. 

Though they are not required, many companies now provide this information voluntarily as these factors play an important role in the way some investors determine risk. 

If you are interested in including some ESG in your investments or discussing the various options, contact us for more information.

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A Deeper Look Into ESG Investing and Analysis

Though the SEC does not currently require this information, many organizations are lobbying for more transparency about these factors. Companies that fail to adapt and account for these factors may be unable to compete long term. Learn more about what these factors mean for your portfolio. 


As environmental concerns such as climate change, water scarcity, and waste management become increasingly urgent, forward-thinking companies are taking action to become more sustainable. While this may increase costs in the short term, it may make them viable in the near future. 


The relationship between employees and companies is evolving, as many employees are pressuring companies for higher wages, improved civil rights, diversity, and higher labor standards. Companies that are actively addressing these concerns may be able to attract better talent and grow more efficiently in the future. 


There is increased pressure on companies to provide more transparency in how they manage their finances, business practices, executive compensation, political contributions, and more.

Companies need to be flexible in how they handle these management practices to ensure that they remain in compliance with federal and state laws while promoting a favorable public image. 

What This Means for Your Investment Strategy

As the world continues to evolve, your investing strategy should too. ESG analysis gives you the tools you need to make more informed decisions about your portfolio and the companies you invest in. This allows you to choose companies that may offer more sustainable growth and less risk. 

When you invest in companies that make a solid long-term investment, you may also reduce your trading volume and tax obligations. This can create a healthier and more diverse portfolio that can withstand volatile economic cycles. 

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Disclaimer: ESG funds may perform differently than other funds or strategies in ESG fund's peer group that do not take into account ESG criteria; there is no assurance ESC strategies will result in more favorable investment performance.

How We Can Help

At Nestlerode & Loy, Inc., our trusted financial advisors in State College, PA, are committed to building smarter investment strategies that will thrive as the world continues to change. We can help guide you through the process of ESG investing. 

Contact Us Today to Schedule a Consultation

If you are interested in learning more about our unique approach to investing for long-term success, contact us today to schedule a meeting. We look forward to helping you meet all your financial goals. 

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