Governments worldwide are desperately seeking solutions to reverse environmental damage, and investors are looking to place their money in companies with good practices and responsibility.
More and more investors are opting for companies that are taking stock of their environmental, social and governance obligations. . In other words, they are looking for ethical investment opportunities. Whether out of an interest for returns or a responsibility to do what’s globally right, investors are exercising their influence in the companies in which they plan to put their money.
Each investor evaluates a company according to its ethics and values, so companies that are not aligned with these criteria will rank lower in the investment decision process than those that are.
Ethical investing is gaining popularity now more than ever. ESG assets have been growing by 30% per year, and it is estimated that this number could reach $53 trillion by 2025.
Companies, researchers and investment managers are responding to this trend by adopting more transparent and conscious reporting. In turn, analysts and researchers are developing methods for rating corporate behaviour.
Mutual funds and exchange-traded funds (ETFs) are catering to ethical and responsible investors. Because ETFs provide a diversified, low-cost means of investing in commodities, ETFs that offer exposure to battery metals have gained popularity.
Along with this trend, new lexicons have been emerging, including, clean or ethical investing, socially responsible investing and simply green investing.
Trillium Gold Mines Inc. (TSXV:TGM), a Canadian-based gold exploration company, has emerged among the new group of companies concerned with environmental stewardship and comprehensive ESG practices that promote best practices in the mining industry.
Trillium’s corporate culture includes safe and responsible practices. Health, safety, diversity, and environmental awareness are top priorities for the company in addition to advancing its projects in the Red Lake Mining District in Ontario.
2021 was a positive year for gold and for gold companies in general. 2022 is expected to be an equally prospective year. Considering that investor interest is no longer solely attuned to returns but to corporate behaviour and responsible practices as well, it follows that ESG ETFs will continue to grow steadily.
Overall, ESG ETFs have seen tremendous growth in both the adoption and the variety offered to investors. By the end of December 2021, the ESG ETF market grew to $120 billion in total assets compared to $70 billion at the beginning of the year. This represented an increase of over 70%.
Because sustainable investing and ESG practices are evaluated primarily on historical data, investors rate the ESG track record of companies of interest as well as their ability to handle future sustainability issues. Thus, companies such as Trillium Gold, with a positive ESG track record, are fast becoming the current focus for retail and institutional investors. A big factor in this performance has a lot to do with the quality of their Red Lake team comprising seasoned professionals who have worked with major companies and are accustomed to higher standards of reporting.
The Red Lake Mining District is one of the most prolific gold mining districts in Canada and this, along with its ESG strategy, positions Trillium Gold Inc. as a company with a comprehensive plan for best practices in the mining industry. Green mutual funds and ETFs are the way forward and will allow investors to steer away from climate change while still earning returns with a more social and environmental objective. Trillium Gold is proving a viable candidate for this growing asset class.
Founder Dinis Guarda
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