Growing interest in environmental, social and governance (ESG) investing has prompted one of the world’s largest independent financial advisory and fintech organisations to unveil a new product to help clients benefit from this decade’s “ultimate megatrend.”
deVere Group will now be able to offer its clients a fixed-yield note of which the proceeds are allocated to the financing of eligible projects with a clear and defined environmental benefit, such as the reduction of carbon emissions.
In June last year, deVere revealed that 26% of clients around the world are eyeing exposure to or already have exposure to ESG investments. This has now increased to 44% over the last 12 months.
Of this new financial solution, Nigel Green, deVere Group CEO and founder says: “An increasing number of clients want to achieve profits with a purpose by investing in companies that prioritise reducing carbon, protect employees’ and consumer rights, and promote board diversity, corporate transparency and stakeholder accountability.
“As such, we feel it is our responsibility to bring to market financial solutions that can help them do this.”
“At the beginning of 2020 we identified that ESG will be this decade’s ultimate investment megatrend. Therefore, we will continue to develop products with legitimate ESG credentials.
He continues: “The ESG trend is set to gain further momentum for several reasons.
“First, governments and regulators are becoming increasingly pro-ESG which boosts investor confidence.
“For example, in the U.S. - the world’s largest economy - the Biden Administration is taking a tougher approach to the use of fossil fuels and is promising swift action to tackle climate change.
“In addition, the new chairman of the Securities and Exchange Commission (SEC), the U.S. financial regulator, Gary Gensler, is a proponent and is likely to strengthen investment and disclosure rules to help the U.S. catch up with Europe.”
He goes on to add: “Second, as millennials, who are statistically more likely to seek responsible investment options, become the major beneficiaries of the largest intergenerational transfer of wealth - an estimated $30tn in the next few years - we can expect both retail and institutional investors to continue to pile into ESG.
“And third, the pandemic has focused minds on the fact that the health of our planet directly affects human health which, in turn, affects the way we all live and work.”
As sustainable investments move from a ‘quirk' or ‘nice to have' to a legitimate portfolio diversification tool that delivers profits with purpose, deVere earlier this year announced it is to offer free, independent advice to clients on socially responsible investing, with the aim of positioning $1bn in environmental, social and governance investments within five years.
Of the new financial solution, Mr Green concludes: “This note is the next step in our sustainability journey. We look forward to developing more to help our clients with theirs.”