deVere launches ‘green’ investment products on surging ESG demand
We’re very pleased to announce that deVere is now offering clients a fixed-yield note, with the proceeds allocated to the financing of projects with a clear and defined environmental benefit, such as reducing carbon emissions.
This is predominantly due to surging interest on environmental, social and governance (ESG) investing, which we defined as decade’s ultimate megatrend.
Last June we revealed that 26% of clients across the globe are considering exposure to or already have exposure to ESG investments. This has since risen to 44% over the last year.
As I talk about on my YouTube channel in this video, and was quoted by International Investment and Money Marketing, amongst others, more and more of our clients want to obtain profits with a purpose by investing in firms that prioritise reducing carbon, protecting employees’ and consumer rights, as well as endorsing board diversity, corporate transparency and stakeholder accountability.
As such, we think it’s our duty to provide solutions that can help our clients do just that.
We said at the start of last year that ESG will be the decade’s ultimate investment megatrend. This is why we will continue to develop products with legitimate ESG credentials.
The trend will accelerate for a number of reasons.
First, governments and regulators are becoming more and more in favour of ESG, which bolsters investor confidence.
As an example, the Biden Administration in the U.S. is taking a tougher stance on fossil fuel usage and has pledged fast action in the fight against climate change.
Moreover, the new chairman of the Securities and Exchange Commission (SEC), Gary Gensler is a supporter of ESG and will likely boost investment and disclosure regulations to catch up with Europe.
Second, with millennials more likely to opt for more responsible investment options – and the recipients of the biggest intergenerational transfer of wealth in the coming years – we can expect retail and institutional investors to continue to opt for ESG.
Third, the Covid crisis has brought home how the health of our planet impacts our health, which subsequently affects how we live and work.
In addition, with sustainable investment moving from a ‘quirk’ to a genuine portfolio diversification tool that delivers profits with purpose, we announced earlier in the year that we will offer free, independent advice to clients on socially responsible investing, with the aim of positioning $1bn in environmental, social and governance investments within five years.
This fixed-yield note is the latest move in deVere’s sustainability journey, and we look forward to progressing further to help our clients on their journey.
I will be delivering a keynote at the inaugural Sustainable Investment Festival this summer to help people navigate this rapidly-evolving area of the market.