Green Agenda - Sustainable Investments Seduce Millionaire Investors

The green revolution is beginning (I told you it would happen) and it is coming from exactly the right people – those who can make a difference.


A recent survey by Savanta has found that ESG investment options are very important among millionaire investors in the UK, with 1 in 4 expressing their desire for a sustainable future. Yet, this future cannot happen without the much-needed finance, finance that must come from those who can afford it. It will come as no surprise that wealthy individuals have a disproportionate effect on emissions, personal CO2 emissions above the average, so perhaps the eagerness to begin investing in a green future is born out of guilt.


But regardless of whether people are feeling guilty or not, the move to more sustainable investment options is a sign that we are making steps – and they’re in the right direction. With the sudden panic that the world really does not have a lot of time, and the cost-of-living crisis meaning people really do not have a lot of money, it is very much up to those with a few zeros behind them to help kick-start the progress.


This interest in ESG investments comes at a time when European governments are setting in motion the papers, incentives and proposals for a more sustainable future. Europe has keenly felt the impact of Russia’s invasion of Ukraine, which has only exacerbated the urgency with which leaders have focused on green solutions. The EU has committed to a doubling of solar capacity by 2025, and increasing green hydrogen threefold.


Before we charge into greenery, however, sustainable, long-term finance must become a reality, and greener investment options need to be presented to markets. The UK’s wealthy investors know this, and wealth managers are beginning to catch on as sustainable investing is becoming a huge marketing ploy, with many clients wanting to see ESG investments included in their options.


Financial centres will soon become the powerhouses behind the green economy, with many already taking steps towards that destination. The City of London and Tokyo have recently deepened their collaboration on their journey to sustainable finance, seeking coherence in global standards.


The cost-of-living crisis and the war in Ukraine have made the transition to green energy and finance ever more difficult, and as incomes are being squeezed by rampant inflation, people aren’t interested in solar panels, wind turbines or hydrogen, they simply want to have some of the money they earn in their own pockets – rightly so.


The transition to a greener Britain is unrealistic during a time when households are struggling to pay their energy bills, and so maybe we may have to wait until we see something that resembles economic growth.


However, I believe we can learn much from one of the key messages of the Declaration of Independence: Those who have the ability to take action have the responsibility to take action.


See you all in a greener future.

 

Edited and Reviewed by Tanish Bagga.

 

References/Further Reading

https://www.ft.com/content/68088fce-ffdb-45fb-9d6e-dbec8ba65199

https://www.ft.com/content/466d429b-e4bc-4e72-b22b-459cf45516e3

https://www.reuters.com/article/japan-investment-london/tokyo-city-of-london-seek-to-deepen-collaboration-on-sustainable-finance-idUSKBN2OB1AY


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