Over three quarters of millennials now prioritise socially responsible and impactful investing, principles that will reshape the investment landscape, a new survey has revealed.
According to a global poll by deVere Group, 77% of millennials cite environment, social and governance investing as their top priority when considering investment opportunities.
Nigel Green, CEO and founder, deVere, said: “This survey underscores that whilst traditional factors – such as anticipated returns, past performance, risk tolerance and tactical allocation – are important factors in millennial respondents’ investment decision-making, they are no longer enough.
“Millennials appear to be leading the charge in socially responsible and impactful investing. They are keen to look for investment solutions that are progressive and forward-looking. And they might be right to do so too. Research has shown that investments that score well in terms of ESG credentials often outperform the market and have lower volatility over the long-run.”
Amid the biggest-ever generational transfer of wealth, expected to be around $30 trillion, from baby boomers to millennials over the next few years, deVere says ESG investing is set to grow exponentially this decade.
Green added: “As responsible investing becomes increasingly mainstream, and millennials become the major beneficiaries of the transfer of wealth, we can also expect institutional investors such as pension funds to pile into ESG over the next few years.
“Environmental, social and governance issues are now the top priority for millennials. They understand that it is perfectly possible – and increasingly necessary – to make a profit while positively and proactively protecting people and the planet. These principles will fundamentally reshape the retail and institutional investment landscape in the next decade.”
