By only investing in environmentally friendly companies, ESGFIRE have outperformed the major indexes for several years. We have a track record of over 1100 % returns since 2018 using our own proven method of identifying high potential ESG companies. During the same time period (2018-2021) the Nasdaq has returned ~126 % and the Swedish stock index OMSPI has returned ~82%. During 2021 our portfolio returned 91% compared to ~21% for the NASDAQ and ~35 % for the Swedish stock index OMXSPI.
ESG as a macro trend
ESGFire was founded in late 2017 when our team identified that sustainable ESG investing practices were becoming a worldwide trend. We merged the concepts of ESG (Environmental, Social, Governance) investing and the FIRE (Financial Independence, Retire Early) movement to follow these quickly growing sectors. In 2018, the ESGFire portfolio was officially launched and since has returned over 1100%. The global macro trend of ESG investing is expected to last for many decades to come, and even increase in coming years.
Why did we decide to focus on ESG investing?
If our world’s governments are to succeed in keeping global warming at a maximum of 1,5 degrees celcius to stop disastrous climate change, it will require massive investments into clean energy technologies to help reduce co2 emissions. It will also require a transformation of the world economy into a circular economy based on recycling rather than today’s unsustainable reality. By joining the macro trend of ESG investing, we have positioned ourselves to take advantage of the rotation into ESG friendly companies, and also as a result the abandonment of companies with a poor ESG track record. 2021 was a record year for ESG investing with $120 billion being poured into sustainable investments, more than double the figure of $51 billion from 2020. This rapid pace is expected to increase as total ESG assets are expected to grow to $50 trillion by 2025. The world is recognizing the challenge ahead and adapting as a result. The European Union has set the target to become carbon neutral by 2050 and while the United States has not made the same pledge, they will most likely be forced to follow in the coming years. With 72% of American adults expressing interest in ESG investing, the demand for ESG friendly investing is looking to be enormous despite any short-term trends or events.
We are not financial advisors and investing in stocks is associated with certain risks, it is possible to lose your entire investment.