A Foundation for Financial Wellness

At Equitable, we believe delivering excellent business performance and contributing positively to society are the way forward for responsible companies. Our dedication to a holistic approach extends to all we do—  from our business operations to how we work to create financial wellness for our clients. Through thoughtful and comprehensive planning we work to ensure our corporate strategy and our approach to our clients is strongly aligned with the values we share.

In recent years, ESG (Environmental, Social, and Governance) initiatives have gained considerable momentum in the corporate world, signifying a broader shift towards responsible business practices. As the world grapples with pressing environmental and social challenges, companies with robust ESG commitments are poised to advance positive change in the world. At the same time, one report found “companies seeking to embrace ESG principles in recent years enjoyed higher revenues, stronger growth of profits and greater access to finance.” In this article, we will explore how our ESG commitments provide a foundation for our holistic approach to retirement planning, and the financial wellness that supports a more secure and prosperous future for our clients and communities.

The emergence of ESG commitments

Before delving into their connection with retirement planning, it's crucial to understand the essence of ESG commitments. ESG represents a framework that companies use to help stakeholders understand how an organization manages risks and opportunities related to the environment, society and governance. These initiatives reflect a commitment to responsible business practices and a dedication to creating sustainable, ethical, and resilient organizations.

The corporate landscape is undergoing a significant transformation, with ESG considerations playing a more important role in defining values and strategies for responsible business. Investors, consumers, and stakeholders are increasingly demanding greater transparency and accountability from companies. This growing importance of ESG values is reshaping how businesses operate and contribute to the well-being of the world at large.

The link between ESG and corporate performance

One of the compelling reasons for companies to embrace ESG commitments is their potential to deliver strong and sustainable performance in the long term. Studies have consistently shown that companies with robust ESG practices tend to outperform their peers over time. This outperformance can be attributed to various factors:

• Risk mitigation: Companies that prioritize ESG factors are better equipped to identify and mitigate risks associated with environmental, social, and governance issues. This proactive approach helps create a more stable and predictable business environment, which, in turn, provides the potential benefits for their clients' financial security.
• Reputation and trust: Strong ESG commitments enhance a company's reputation and foster trust among stakeholders. Customers are more likely to support and invest in companies that align with their values, which can lead to increased brand loyalty and customer retention.
• Attracting investment: ESG-focused companies often find it easier to attract investment capital. Institutional investors and individual investors alike are increasingly considering ESG factors when making investment decisions. This influx of capital can contribute to a company's growth and financial stability.

ESG's influence on financial planning

The connection between ESG commitments and financial planning is more profound than it may initially appear. A healthy society is intrinsically linked to financial wellness, and companies that prioritize ESG factors play an important role in helping to foster such an environment.

A thriving society with strong environmental protections, equitable social systems, and transparent governance structures lays the foundation for individual financial wellness. Companies that model and contribute positively to these aspects of society indirectly support the financial security of their clients.

ESG considerations also align favorably with long-term thinking in financial planning. They open the door to identifying investment opportunities that not only generate financial returns but also contribute to a more sustainable and resilient future. This approach empowers individuals to make investments that consider these factors while working toward their retirement goals.

Benefits for clients: stability and growth

ESG commitments can provide a broader perspective on stable and resilient investment and savings options, which ultimately benefit clients' financial stability. Companies with strong ESG commitments are better positioned to navigate economic downturns and environmental challenges. Their ability to adapt to changing circumstances can potentially safeguard clients' investments, helping to ensure a more stable financial future.

Understanding the value of sustainability at the corporate and societal level allows Equitable to apply that perspective to individual savings and investing strategies. Knowing how and when to allocate resources, re-balance a portfolio, or make other changes provides clients with the tools and strategies to establish long-term financial well-being. 

Empowering financial professionals

Financial professionals play a pivotal role in helping clients align their investment goals with their values. ESG data and insights are valuable tools in achieving this alignment:

• Goal alignment: Having skilled and valued financial professionals is the foundation of our relationship with clients. Research indicates that strong ESG commitments are crucial to attracting and retaining top talent. 
• Risk and opportunity assessment: ESG considerations can help provide financial professionals with a holistic view of potential risks and opportunities. This comprehensive understanding allows them to make more informed investment decisions that prioritize both financial portfolios and ethical considerations- two dimensions of a holistic view of financial well-being. 
• Building trust: Prioritizing ESG commitments helps financial professionals establish stronger trust with their clients. Clients appreciate the transparency and integrity that come with this holistic perspective, leading to deeper and more enduring client-advisor relationships.
• Transparency in reporting: Transparent reporting of ESG factors is crucial in helping clients make informed investment choices. Equitable, for example, is committed to providing clear and comprehensive ESG reporting, ensuring that clients have access to the information they need to make responsible investment decisions.

The world is undergoing a profound transformation, and companies that prioritize ESG factors are well-positioned to shape a more sustainable, rewarding, and resilient future for all stakeholders.

By recognizing the interconnection between ESG commitments, financial wellness, and holistic retirement planning, we can empower individuals to select investments that have a positive impact while working toward their long-term financial goals. Equitable remains committed to championing ESG standards, reflecting our belief that delivering excellent business performance and contributing positively to society are not mutually exclusive but rather integral to responsible companies' success.

To explore how our commitments to ESG and holistic financial planning can support you on the path to financial wellness, reach out to meet with an experienced professional now.