“I want my money to reflect my values…
but I don’t want to sacrifice performance.
Is that even possible?”

This is at the heart of ESG investing—Environmental, Social, and Governance investing—and it’s an area often clouded by myths, politics, and marketing noise.
Many of our clients have heard of ESG, know it has something to do with sustainability or “doing good,” but aren’t quite sure how it works, whether it’s legitimate, or whether it makes financial sense.

If that sounds like you, you’re in the right place. Let’s break it down in a clear, evidence-based, fiduciary way.

What ESG Actually Is (In Plain English)

ESG is not a product. It’s not a political ideology. And it’s not about chasing headlines.

It is simply a framework for evaluating companies on factors that traditional financial analysis often overlooks—factors that can meaningfully influence long-term performance.

Environmental

How responsibly a company uses resources, manages waste, and prepares for long-term environmental risks.

Social

How it treats employees, customers, suppliers, and the communities in which it operates.

Governance

The strength and integrity of the company’s leadership—transparency, accountability, board structure, and long-term decision-making.

In other words:

ESG is about identifying well-run, future-oriented companies—and managing risks before they become problems.

Whether you personally identify with the word “sustainable” or “values-based,” ESG fundamentally supports intelligent long-term investing.

Do You Have to Give Up Performance?

Short answer: No. Not when ESG is applied thoughtfully, rigorously, and without ideology.

Let’s address this directly and factually.

1. ESG Helps Avoid Expensive Surprises

Companies with poor environmental practices, labor issues, or weak governance often face:

• Lawsuits
• Fines
• Regulatory shutdowns
• Scandals
• Reputational damage

These events destroy shareholder value. ESG analysis helps identify and avoid those risks.

2. Strong Governance = Stronger Companies

Well-run companies—those with disciplined leadership and responsible practices—tend to:

• Allocate capital more effectively
• Manage risk better
• Produce more stable long-term returns
• Avoid catastrophic blow-ups

This is not moralizing. It’s common sense.

3. The Research Is Clear

Across dozens of peer-reviewed studies:

• ESG portfolios often match traditional portfolios in performance
• In certain environments, ESG portfolios may experience lower volatility
• Companies with strong governance and sustainability practices tend to outperform over long horizons
• ESG is not a guaranteed return enhancer—but it’s certainly not a drag when implemented well

The key distinction is quality. High-quality ESG investing is evidence-based. Low-quality ESG investing is marketing.
At Valdez Financial Group, we avoid the latter entirely.

Why ESG Appeals to Many of Our Clients

Most of our clientele have accumulated between $500,000 and several million dollars.
They’re successful, thoughtful, and intentional about how they live—and how they invest.

They often tell us:

• “I want my money aligned with my values.”
• “I want companies that behave responsibly.”
• “I want exposure to forward-looking industries.”
• “I want to avoid companies that contradict my principles.”
• “I want my portfolio to do good without sacrificing my retirement.”

This is where ESG offers a meaningful bridge between values and financial rigor.

What ESG Does Not Require:

• Giving up diversification
• Chasing fads
• Accepting lower returns
• Emotional decision-making
• Supporting any political agenda

You can build a portfolio that reflects your worldview and still hold yourself to the highest standards of financial discipline.

How VFG Approaches ESG (Our Fiduciary Lens)

We treat ESG not as a product set, but as a due-diligence enhancement in portfolio construction.

1. Institutional-Quality Research

We evaluate ESG data from multiple independent sources—not marketing materials—to ensure alignment with financial fundamentals.

2. Integration, Not Ideology

ESG is one lens among many:

• Risk
• Return
• Diversification
• Tax efficiency
• Factor exposure
• Cost
• Manager due diligence

It complements disciplined investing; it does not replace it.

3. Customization for Each Client

Values vary. Portfolios should, too.

Some clients prefer environmental focus. Some prioritize governance. Some want to avoid certain industries. Some simply want an ESG-informed approach without exclusions.
It’s not one-size-fits-all.

4. Avoiding “Greenwashing”

We vet funds and managers rigorously. If it claims to be ESG but cannot demonstrate the process behind the label, we don’t use it.

5. Keeping Performance and Risk at the Center

Your long-term success comes first—always. Your values enhance the process; they don’t override prudence.

ESG Is Ultimately About Intention and Integrity

Most people who are drawn to ESG aren’t trying to change the world with a single investment.

They’re simply saying:

• “I want to be aligned.”
• “I want to be responsible.”
• “I want to invest intentionally.”
• “I want my financial success to reflect my personal values.”

And they want to do all that without compromising their retirement security.

The good news is—you can.

When done thoughtfully and evidence-based, ESG is not a concession. It’s simply a more complete way of evaluating investments in an increasingly complex world.