The latest developments in the ESG space.

Ortec Finance
New global research published this week by Ortec Finance, a provider of risk and return management solutions for professional investors, shows that there has been a big increase in ESG investing.

According to the research, nearly all (98 per cent) wealth managers and financial advisors say that clients are increasing their focus on ESG credentials in their investment portfolios. 

The study was carried out by independent research company PureProfile, interviewing 100 wealth managers and financial advisors located in Canada, the US, the UK, Australia, Germany and Switzerland whose organisations manage around $750 billion of assets for clients.

It found that attention to ESG factors will intensify over the next 24 months with 80 per cent of respondents expecting slight increases in client focus; 15 per cent predicting dramatic increases; while 5 per cent said the focus will stay the same.

When looking at climate change specifically, more than a third of wealth managers and financial advisors said they have seen a dramatic increase in client focus, while 62 per cent have seen a slight increase. Just 2 per cent have seen no change, the research shows. The research also reveals that 96 per cent of wealth managers and advisors found that investors are avoiding companies that have a harmful impact on the environment or that contribute to climate change. While respondents show high levels of confidence in the existing systems and tools they use to review the ESG and climate risks of the funds and stocks that make up their clients’ portfolios, nearly all (95 per cent) agree that the wealth management/portfolio management industry needs to invest heavily in new technology to help improve their understanding of those risks.

“Private investment is critical to ensuring the world is able to meet its commitment to net zero carbon emissions by 2050 and avert a climate crisis. It is encouraging that so many investors are increasing their focus on ESG issues and actively avoiding companies that contribute to climate change,” Ronald Janssen, managing director goals-based planning at Ortec Finance, said.