Wealth Solutions & Wealth Planning

Hawksford’s Head of Global Client Solutions explores rise of ESG

Darren Kelland, Global Head of Private Client Services, Hawksford, shares his perspective on the popularity of ESG investments amongst the next generation of investors, reflecting a desire for investment solutions which both achieve long-term returns alongside climate and socially conscious philanthropy and investment endeavours.

Kelland highlights a shift in the attitude of new investors, many of whom express their desire for their investments to support positive change whilst also facilitating growth in their wealth.

These new investors “want routes for investment and philanthropy that represent the most sensible, informed and mature mindset for achieving long-term return,” writes Kelland.

These new ESG-centric investors are also changing the definition of ESG; whilst once ESG investment may have been carried out through the avoidance of damaging investments, such as investments in arms or fossil fuels, new investors want to ensure that their portfolios are allocated into offerings which avoid long-term damage to society or the environment.

“Many studies have found that ESG investing improves downside protection while improving upside potential, a win-win situation for any investor,” writes Kellend, meaning that the new wave of ESG-focused investors also benefit from both better returns and a clearer conscience.

The article goes on to describe the observable shift from satisfactory ESG investments to those which satisfying their ESG criteria, thus fuelling the growth of impact investing and professionalisation in philanthropic strategies.

Kelland concludes that “at Hawksford, we can see the ripples of impact investment through the entire investment ecosystem.” He notes the substantial increase in both the demand for and options available for ESG-friendly investment, concluding that the rise of ESG shouldn’t be seen just as a revolution, but as an opportunity.

Read the full article HERE.