Gaining Perspective What HNW Investors are Saying About ESG
Jun 30, 2022
Laura Hanachek-Gregg, Director of Practice Management and Advisor Research at FlexShares, shares insights from a recent survey of over 500 high-net-worth investors regarding ESG investing. She discusses the surprising knowledge gaps among investors, revealing that only a third fully understand ESG principles. The conversation highlights strong interest across genders and generations, yet points to barriers like philosophical opposition and advisor reluctance to recommend ESG strategies. Laura emphasizes the need for advisors to educate clients and tailor discussions to enhance investor engagement.
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ESG Demand Is Broad-Based
- Demand for sustainable investing spans genders, ages, and wealth brackets, not just millennials or women.
- Sixty-five percent of respondents were at least somewhat interested in ESG investing.
All Ages Plan To Increase ESG Allocations
- Interest cuts across demographics: men, older investors, and millennials all show substantial ESG interest.
- Two thirds of interested respondents plan to increase allocations, with 90% doing so within three years.
Values And Growth Drive ESG Interest
- Investors mainly want ESG to align portfolios with personal values and address specific priorities.
- About 48% also view ESG as a way to capture growth from sustainable business practices.