It absolutely shouldn’t but it does matter unfortunately. Investing is usually thinking about what kind of profit stability or high growth a company can provide and if that company is at an attractive valuation to purchase. ESG and Impact investing adds a another layer that ask investors to consider the impact these companies have on the environment of nature and society.
Impact investing is more than just considering about natural habitat and weather and investing in companies that are working to find solutions to important problems we will have in the future. It is about making your voice heard to your companies and to fellow professionals without directly spelling out the sentences.
Politics is a subject that not many are comfortable discussing because of the opinions they differ. But it is a very important engine that provides stability in an environment that allows entrepreneurship, science development, technological breakthroughs and financial world to prosper. So it is also important to know what kind of administration these companies do business with. If a company that is profiting from an administration that is allowing instability in the society or massive damage to nature, such facts should be judged carefully as well as other ESG and impact investing topics.
Hence, it is absolutely important to discuss the administration policies and history of actions it has taken without having your emotions involved. This requires investor to distinguish between facts and opinions of others.
