ESG Investment Funds - What Fleets Should Consider

Have you ever wondered why Tesla stock soared to almost $900 dollars per share after the pandemic crash, while other automotive stocks did not rebound in like fashion? The answer is mostly found in a new investment strategy called "ESG," environment, social, and governance. There is a rising set of fund managers that believe that businesses who appear as better global citizens and promote a more pressing concern for the plant, society, and employees are better positioned to profit in the long term. 

The success of various virtue funds is heating up, as well as the companies who's stocks they are acquiring. Perhaps it is a self-fulfilling prophecy, but a look at Investor Business Daily's top 50 ESG stocks indicates this business model works because this group of stocks is rising. 

The question is, how do companies earn a high ESG score? What can fleet professionals offer to help in ESG reputation? Scoring is based on criteria from the Paris Climate Agreement, which leads to the answer, regarding fleets. Vehicles that are cleaner, emit less carbon by using alternative fuels, is a way to wrap fleets in ESG nobility and promote a more virtuous corporate concern for the planet. 

If you are waiting for alternative fuels to catch on, the time may have finally arrived. The famous line from the movie Jerry Maguire "show me the money" is happening in new and exciting ways.