Greener and greater
Wealth amid a pandemic
By Linda Sherlock , Executive Head : Wealth and Business Development
hether we like it or not , the world has changed . It looks completely different now
“ Wfrom how it did a few months ago . It may never look the same again . We have to choose a new way forward ,” Greta Thunberg , climate activist .
One thing that one can say for sure about the COVID-19 pandemic is that it has indeed changed the world drastically . Who would have thought that the oil price would dip into the negative ? That , in the blink of the eye , travel would change in a manner that will have a major impact not only on economies but also the environment .
It is changes like these , that made wealth managers and investors sit upright and reconsider where and how they invest .
Environmental , social and ( corporate ) governance ( ESG ) investing is growing in popularity across the globe , especially among the wealthy and new young investors who believe these values must be integrated into their selection of investments , instead of only focusing on potential profits and risks .
This is not surprising as there has also been a dramatic shift among many world leaders , businesses , philanthropists and non-governmental organisations – including in South Africa – about the long-term impact of climate change on the environment , and how to ensure sustainable development to decrease inequality .
According to research from Ernest & Young LLP , ESG investing is personal to individuals , with many concerned about environmental issues , while others are focused on social issues such as diversity and inclusion , data protection and human rights .
“ This will make it even more challenging in the future for wealth providers to understand every client ’ s unique needs , and to deliver against them ,” it says in its
2021 EY Global Research Report - Where will wealth take clients next ?
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