{"id":167540,"date":"2020-03-27T10:00:52","date_gmt":"2020-03-27T14:00:52","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=167540"},"modified":"2020-03-27T07:02:06","modified_gmt":"2020-03-27T11:02:06","slug":"coronavirus-pandemic-will-drive-responsible-esg-investing-skywards","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/03\/coronavirus-pandemic-will-drive-responsible-esg-investing-skywards\/","title":{"rendered":"Coronavirus pandemic will drive responsible (ESG) investing \u2018skywards\u2019"},"content":{"rendered":"
March 27, 2020<\/div>
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By George Prior<\/strong><\/p>\n

The coronavirus pandemic and its economic fallout will trigger a \u2018skyward surge\u2019 in sustainable, responsible and impactful investing over the next 12 months, affirms the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The prediction from the boss of deVere Group, which has more than $12bn under advisement, comes as Bloomberg analysis reveals that the average Environmental, Social and Governance (ESG) fund fell by half the decrease registered by the S&P 500 Index over the same period during the Covid-19 crisis.<\/p>\n

ESG refers to a class of investing also known as \u201csustainable investing.\u201d\u00a0 The umbrella term covers three main factors. \u2018E\u2019 is for \u2018environment\u2019 and includes issues such as climate change policies, carbon footprint, and use of renewable energies. \u2018S\u2019 is for \u2018social’ and includes workers\u2019 rights and protections. \u2018G\u2019 is for \u2018governance\u2019 and includes diversity of the board and corporate transparency.<\/p>\n

Mr Green comments: \u201cThe coronavirus pandemic will trigger a \u2018skyward surge\u2019 in sustainable, responsible and impactful investing over the next 12 months for three key reasons.<\/p>\n

\u201cFirst, before the pandemic, research has revealed that investments that score well in terms of ESG credentials often outperform the market and have lower volatility over the long-run.<\/p>

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\u201cSince the Covid-19 public health emergency up-ended the world, the latest broad analysis shows that ESG funds have typically continued to outperform others.\u201d<\/p>\n

He continues: \u201cSecond, the coronavirus pandemic has underscored the vulnerability and fragility of societies and the planet.<\/p>\n

\u201cIt has underscored that increasingly companies will only survive and thrive if they operate with a nod from the wider court of public approval.<\/p>\n

\u201cIt has underscored the complexity and interconnectedness of our world in terms of demand and supply, in trade and commerce \u2013 and how these can be under threat if not sustainable.\u201d<\/p>\n

Mr Green goes on to add: \u201cThird, demographic shifts will support the trend.\u00a0 Millennials – those who were born in the time period ranging from the early 1980s to the mid-1990s and early 2000s \u2013 cite ESG investing as their top priority when considering investment opportunities.<\/p>\n

\u201cThis is crucial because the biggest-ever generational transfer of wealth \u2013 likely to be around $30trn – from baby boomers to millennials will take place in the next few years.\u201d<\/p>\n

In January, deVere Group carried out a global survey that revealed 77% of millennials said that Environmental, Social and Governance (ESG) investing was their top priority when considering investment opportunities.<\/p>\n

This survey highlighted that whilst traditional factors \u2013 such as anticipated returns (10%), past performance (7%), risk tolerance (4%) and tactical allocation (2%) \u2013 are important factors in millennial respondents\u2019 investment decision-making, they are no longer enough by themselves.<\/p>\n

Nigel Green concludes: \u201cESG investing was already going to reshape the investment landscape in this new decade \u2013 but the coronavirus will quicken the pace of this reshaping.<\/p>\n

\u201cInvestors are increasingly aware that it is possible – and increasingly necessary – to make a profit while positively and proactively protecting people and the planet.<\/p>\n

\u201cAs such, they will be making investment decisions after measuring the sustainability and societal impact of a sector or company as these criteria help to better determine their future financial performance, or in other words their risk and return.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The coronavirus pandemic and its economic fallout will trigger a \u2018skyward surge\u2019 in sustainable, responsible and impactful investing over the next 12 months, affirms the CEO of one of the world\u2019s largest independent financial advisory organizations. The prediction from the boss of deVere Group, which has more than $12bn under advisement, comes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-167540","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/167540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=167540"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/167540\/revisions"}],"predecessor-version":[{"id":167542,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/167540\/revisions\/167542"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=167540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=167540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=167540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}