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Millenials but ESG on par with returns

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Sustainable investing has become a more mainstream issue for many investors, particularly millennials, in the wake of the landmark agreement at the UN Climate Change conference COP21 in Paris last year, solidified at COP22 in Marrakech last month.

Schroders’ Global Investor Study 2016 shows the millennial generation ranked environmental, social and governance (ESG) factors equally as important as investment outcomes when considering investment decisions, with 91 per cent of millennials more likely to stay invested in a positive ESG investment for longer than usual compared to those aged over 36.

Jessica Ground, global head of responsible investing at Schroders, says: “Investor interest in ESG issues looks set to grow given its prevalence among millennials. While returns are still the main issue, ESG’s importance to end investors means these factors are too big for any adviser to ignore. It is important investors recognise the value of being invested for the long term and this is especially relevant when considering ESG factors.”

With growing demand for these types of investments, it is unsurprising that more tools are being developed to help advisers and their clients choose the right investment.

Read the full article at FT Adviser.