ESG & Impact Investing

Background

At Capital IQ, we believe that wealth should be a reflection not just of financial success, but also of personal values. Increasingly, clients are seeking portfolios that deliver strong returns while contributing positively to society and the environment. ESG (Environmental, Social, and Governance) and Impact Investing strategies allow investors to align their capital with causes they care about, without compromising on performance.

The Challenge

One of our clients, a second-generation entrepreneur, approached us with a clear mandate: to ensure that their investments supported sustainability and ethical principles. Their concern was that traditional investment approaches did not adequately reflect their values and, in some cases, conflicted with them. The challenge was to construct a portfolio that respected these boundaries while still maintaining competitive returns and diversification across asset classes.

The Solution

Our team undertook a detailed analysis of the client’s values and priorities, mapping them against global sustainability frameworks such as the UN Sustainable Development Goals (SDGs). With this foundation, we created a portfolio screened for ESG compliance, excluding sectors that conflicted with the client’s ethics—such as fossil fuels and tobacco—and favoring companies that demonstrated strong governance, renewable energy initiatives, and social responsibility practices.

In parallel, we introduced measurable impact metrics, allowing the client to see not only financial performance but also tangible non-financial outcomes. These included carbon footprint reduction, renewable energy exposure, and gender diversity statistics within portfolio companies. The client was provided with quarterly impact reports, making the results both transparent and accountable.

The Outcome

The ESG-aligned portfolio successfully delivered returns that were competitive with traditional benchmarks, while also offering the client the satisfaction of knowing their investments were supporting positive change. Market performance was not sacrificed; instead, the portfolio demonstrated resilience, particularly during periods of volatility when companies with strong governance practices outperformed peers.

Key Takeaway

This case demonstrates that ESG and Impact Investing are not about giving up returns, but about redefining success. By aligning wealth with values, Capital IQ helped the client achieve both financial and ethical goals. The result was a portfolio that performed competitively in the market while advancing sustainability and social responsibility—proving that purpose and profit can go hand in hand.