Pandemic leads to growing ESG awareness
The inclusion of ESG (environmental, social and governance) issues within mainstream investment strategies has been gaining in prominence during the pandemic, according to new research – and it’s a trend that’s set to continue.
The global rise of ESG – a megatrend here to stay
ESG investment has been increasingly catching the interest of investors across the globe for several years now, due to consumers’ growing desire to know where their money is being invested and the wider social and environmental impact it is having. In fact, according to a recent survey from CoreData, 75% of professional fund buyers believe that all investment funds will be incorporating ESG factors into their strategies within the next five years.
The COVID effect
The survey also found that the rise of ESG investment has been accelerated by the pandemic, with 80% of UK fund investors saying it has led them to focus more on ESG. Founder and principal of CoreData, Andrew Inwood, commented: “The pandemic has helped reset humanity’s moral compass and encouraged people to favour investments aligned with their beliefs and values.”
COP26 will keep fire burning
Environmental factors such as pollution, waste and climate change are among ESG investors’ biggest concerns, according to research*. This is likely to mean that coverage of the 26th UN Climate Change Conference of the Parties (COP26), to be held in Glasgow this November, will further boost interest in ESG investing. Across the pond, new US president Joe Biden has committed to an ambitious new climate regime, which is also expected to raise climate change and the COP26 conference higher on the world agenda. Yet another reason why ESG is set to be a watchword for 2021 and beyond.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
Other Insights of interest
2nd June, 2021
Economic Review of May 2021
BoE upgrades growth forecast The Bank of England (BoE) has significantly increased its 2021 growth… Read full insight
28th May, 2021
Taking back control of your retirement
Consumers lack confidence and understanding about issues relating to their pensions, according to two studies…. Read full insight
25th May, 2021
Property Market Review – May 2021
Amazon expanding UK warehouse space As the US e-commerce titan continues to ramp up its… Read full insight
25th May, 2021
Residential Property Market Review – May 2021
Queen’s Speech is ‘significant’ for housing market A key announcement in the Queen’s Speech on… Read full insight