And, it added: “This year’s report notes that HNWIs turn primarily to wealth managers (30%), family (27%) and friends (22%) for advice on social impact opportunities and approaches. It also shows that of those HNWIs currently receiving social impact support from their wealth managers and firms, more than half (54%) want even more help in setting clear social impact goals, determining which investments will effect the most change, structuring their investments, and measuring the impact of their social efforts.”
According to Gilbert, there is no doubt that ESG investing will continue to grow, especially in the UK.
Last week, responsible investment research house EIRIS said it estimated that the amount of money invested in the UK’s green and ethical retail funds reached over £15bn in 2015, up from approximately £6bn ten years ago. And, while this is a significant jump, Gilbert pointed out that it remains significantly behind the US and Europe.
In the US, Gilbert said, as of 2014, there was around $5.67 trillion in ethical investments as at 2014, while in Europe that figure was around €108bn.
“The UK is way behind,” Gilbert said, but added that the demand was there.
To back this up, he pointed to a 2011 EIRIS IPSOS survey of 1,030 adults in the UK. 38% said they were interested in green or ethical financial products and services. Of those interested, 90% said they would be likely to switch to a different provider if it offered green or ethical investment products, the survey reported.
There is a significant gap between that 38% number and the roughly 1% of the UK space that is currently invested in ethical funds, but, if the views expressed above come to fruition, it certainly looks likely to close.
But, it will only do so, if clients are aware of what their options are, which is where the wealth management community comes in. And, in a world where everyone is looking for clients, ensuring that you are providing the services clients increasingly want becomes ever more important.
