Investors may generally consider environmental, social and corporate-governance (ESG) issues as risks to a company\u2019s financial performance and a further means of conducting due diligence when making investment decisions.<\/p>\n\n\n\n
Given an increasing focus on ESG-related concerns, these issues appear to have gained greater financial relevance, sitting alongside other critical factors that may affect investment returns, including a company\u2019s revenues, cash flows, creditworthiness, and operational performance.<\/p>\n\n\n\n
As conducting ESG analysis may be considered a daunting task, considering the multitude of known, unknown, and debatable variables that underpin environmental, social and corporate-governance topics, more discrete criteria may be used to decide whether a particular company is either aligned with those values deemed important, and whether it is effectively mitigating ESG-related risks to protect or bolster its bottom line and generate positive returns.<\/p>\n\n\n\n
As part of conducting a fundamental assessment of a company, IBKR\u2019s Impact Dashboard enables investors to select those values they consider important, or very important<\/em>, to them, and illustrates how these values align with the companies in which they have elected to include in their portfolios.<\/p>\n\n\n\n Moreover, in the Impact Dashboard, investors may also select business practices they would prefer to avoid, such as high-water usage, animal testing, weapons manufacturing, and hazardous waste, among many others.<\/p>\n\n\n\n View the video below for a detailed demonstration of how the Impact Dashboard functions and supports investors\u2019 fundamental analyses:<\/p>\n\n\n\n