How to make your finances more sustainable with ESG investing

At Francis Clark Financial Planning, we talk to clients every day, and we know that many of you are committed to managing your wealth more sustainably.

We share these values, which is why PKF Francis Clark became a Certified B Corporation in April. This status recognises our ongoing efforts to support responsible business practices that positively impact our colleagues, clients, communities and the planet.

As such, our financial planners are here to provide the advice and guidance you need to align your finances with your values – ESG investing could be an important part of this.

Despite media speculation and investor concerns over issues such as ‘greenwashing’ (more on this later) and data transparency, the ESG investment market is growing. According to Fortune Business Insights, global ESG investments were valued at $39.08 trillion in 2025, and they are projected to reach $180.78 trillion by 2034.

ESG News recently revealed that 92% of global investors said they are “very or somewhat interested” in sustainable investing, up from 88% in 2025. Moreover, research by Capgemini found that 37% of high net worth individuals (HNWIs) say sustainability impacts their investment decisions.

If you’re eager to make your investment portfolio more sustainable but lack the knowledge and confidence to get started, read on to learn all the essential information.

The 3 core elements of ESG investing

ESG investing is a strategy that considers ethical business practices and sustainability, alongside potential financial returns.

An investment’s ‘ESG score’ measures how sustainable it is in each of the three core elements:

• Environmental – How a company manages its impact on the planet. Key metrics may include carbon emissions, energy efficiency, waste management and climate change exposure.
• Social – How a company relates to people, including employees, customers and the wider community. Key metrics may include diversity and inclusion, employee health and wellbeing, consumer protection and community interactions.
• Governance – How a company is managed and overseen. Key metrics may include board structure, reporting procedures and transparency.

There are several organisations that provide ratings based on these categories, such as MSCI, S&P Global and others. However, each agency uses a different methodology, which means a company’s ESG score can vary depending on who assesses it.

4 compelling benefits of ESG investing for high net worth individuals

There are many reasons why you might want to consider adding ESG investments to your portfolio. Here are four key benefits:

1. Manage risk in your portfolio more effectively

Looking beyond a company’s financial performance and evaluating how it’s run could minimise your exposure to events such as labour disputes, changes in environmental regulations and social disruption.

2. Contribute to a healthier environment and workforce

Using your wealth to support companies that prioritise initiatives such as carbon offsetting and renewable energy could allow you to align your finances with your values and leave a meaningful legacy.

3. Benefit from the potential for higher returns

Companies that score highly on the three core ESG elements may benefit from lower costs and higher profit margins due to their operational efficiency and regulatory compliance. Indeed, a review by Morningstar found that its Global Sustainability Index outperformed conventional counterparts over one-, three- and 10-year periods.

4. Engage the next generation in investment decisions

Capgemini’s research shows that while 37% of all HNWIs consider sustainability when making investment decisions, this figure rises to 47% for HNWIs under 40. As such, adding ESG to your portfolio could help you transfer wealth to the next generation by educating them about investing and engaging them in key decisions.

Practical first steps for adding ESG to your existing portfolio

If you’re new to ESG investing, here are a few simple steps you can take to get started.

Define your values and priorities

Before meeting with your financial planner to review your portfolio, you might find it useful to write down the issues that matter to you the most. This could help you decide which causes you want to support and which sectors or practices you do not wish to profit from.

Review your current investments and research new opportunities

Schedule a meeting with your financial planner to discuss your priorities. They can help you assess how well your current investments align with your ESG preferences and research new opportunities that may fit better with your values.

Educate yourself about ESG strategies

There are several ways to approach ESG investing, such as ‘negative or exclusionary screening’ and ‘thematic or impact investing’. Your financial planner can explain how these different strategies work in simple, jargon-free language. They’ll then help you find an approach that fits your specific needs and goals.

Be mindful of (but not put off by) greenwashing

Many investors are wary of venturing into ESG due to greenwashing, which occurs when companies inaccurately or selectively report their ESG performance to boost their ethical credentials.

However, in recent years, ESG regulations have been tightened to clamp down on this practice and enhance transparency. In the UK, the Financial Conduct Authority enforces strict anti-greenwashing rules.

Moreover, at Francis Clark Financial Planning, you’ll always have our support. We’ll be there to thoroughly research any new investment opportunity before you commit any of your money to it.

We have an extensive professional network to help us provide the advice and guidance you need to feel confident investing your wealth. This includes external investment managers who can manage your portfolio on your behalf. Our internal investment management committee continually monitors and reviews the performance of any connections we refer you to, ensuring you always receive the highest standards of service.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.