According to EY, the sustainable investment trend is being driven in part by people like myself, millennials. We are children of baby boomers and are the next wave of young professionals seeking to invest funds in sustainable methods.
The report by EY states that millennials will receive more than $30 Trillion of inheritable wealth and sustainable investments will grow from that demand.
Sustainable Investment is also known as “Social Responsible Investment” (SRI), which includes environmental, social and governance (ESG) factors into investment decisions.
Individuals who invest sustainably choose to invest in companies, organizations, and funds with the purpose of generating measurable social and environmental impact alongside a financial return. Impacts are spread across various sectors, from renewable energy and climate change, to health, safety, and community development.
Sustainable investing has experienced a compound annual growth rate of 107.4% from 2012 to 2014 and have tripled since 2008.
Millennials are incorporating sustainability
- 29% of investors in their 20s and 30s seek a financial advisor that provides values-based investing. Millennials rank this priority third in a list of nine identified priorities.
- Millennials are achieving greater integration of their money and values by seeking personal fulfilment in their careers, applying a global consciousness to purchases and investing in sustainable, impactful business models.
The Future of Sustainable Investment
Financial Services Firms must prioritize advisor awareness of millennial values and assure advisors are fully trained and equipped with the tools required to have meaningful discussions around sustainable investing.
Firms most adequately prepared to address sustainable investing and the intergenerational wealth transfer together will not only capitalize on the acquisition of new clients, but also effectively serve their current client base.
If you are interested in Social Responsible Investments, I recommend using Wealth Simple App because its a simple way to learn more and invest using their robo app.
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