Nearly eight in 10 investors in the millennial generation prioritise socially responsible and impactful investing, according to research conducted by the deVere Group.
The company polled some 1,125 people globally and found 77% of millennials (born between the early 1980s and early 2000s) said matters relating to the environment, social impact and governance were front of mind when making an investment.
“While 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,” explained Nigel Green, chief executive officer and founder of deVere.
“Indeed, ESG considerations now sit at the heart of that process.”
Green claimed that millennials were effectively “leading the charge” in impactful and socially responsible investing.
He added: “They are keen to look for investment solutions that are progressive and forward-looking and they might be right to do so. Research has shown that investments that score well in terms of ESG credentials often out-perform the market and have lower volatility over the long-run.
“For this reason and, importantly, because the biggest-ever generational transfer of wealth – likely to be around $30trn – from baby boomers to millennials will take place in the next couple of years, ESG investing is set to grow exponentially in the 2020s.”
The deVere Group is now one of the world’s largest independent financial advisers to high net worth individuals with a network of 70 offices dotted around the globe. It has some 80,000 clients and $12 billion in assets under advisement.