Wealthy Doubters Slow ESG Investment Growth
More and more High Net Worth Individuals (HNWIs) are acknowledging the benefits of investing in Environmental, Social, and Governance (ESG) funds, yet most are still hesitant to take action. Results from the third edition of the Saltus Wealth Index revealed that roughly 80% of HNWIs in the UK understand the positive implications these investments can have, while Benefits Research Institute identified trends such as younger HNWIs looking to make a difference and wider populations understanding how mission-driven investments can bring a good return. When done responsibly and wisely, HNWIs can diversify their portfolio with ESG investments, contributing to a more sustainable future with potentially beneficial tax advantages. However, risks can come with ESG funds and understanding the risk-return profile of any such investment is important. With proper guidance and advice, HNWIs can make meaningful investments that better manage risks and provide a financial and ethical return.