Friday, March 1, 2024

Interest in ESG investing does not fade in the face of a complex economic environment

After a long period of growth, the attention given to ESG issues has recently been overshadowed by the issues of inflation, interest rates and geopolitical uncertainty. However, even in this complex economic environment, the transition to a low-emission economy and society continues to be a growing priority, according to a survey* conducted by Nordea AM of financial advisors and private bankers in Spain, Italy and Germany.

The starting point of this study is that, in the world of asset management, ESG regulation is constantly evolving, trying to adapt the entire value chain. One of the main trends identified is that the interests of advisers are hidden.

According to the results, Spanish financial advisors have a strong personal interest (50%) in ESG issues, slightly surpassed by their Italian colleagues (62%), with Germans comes in last place (39%). “This interest is an indication of the growing recognition of the importance of sustainability investment, which shows that they are not only aware of the environment, social responsibility and corporate governance issues, but also increasingly involved in promoting these issues to their clients,” explains Nordea AM in the conclusions of its study.

In addition, it considers that the active participation of advisors in promoting these issues will help further push the adoption of responsible investments, positively influence the financial market and contribute to greater investor awareness of these issues. in ESG.

The second trend observed is that retention preferences affect more than half of customers. In this sense, financial advisors play an important role in this context, since more than 50% of their clients are interested or may be interested in sustainability issues. Surprisingly, among clients with these preferences, most are willing to listen and be advised by counselors. For the manager, this shows how important it is for financial advisors to fully assess and understand the ESG needs of their clients.

“This approach allows advisors and bankers to capture important opportunities. Sustainability is no longer an ethical concept, but a plausible financial reality. In this sense, the financial advisory market or Advisory can create customized investment portfolios that reflect the wishes and values ​​of its clients by meeting their sustainability preferences,” they said.

Third, the survey shows that climate change is the dominant issue. It shows that financial advisers say that almost half of their clients have a preference for sustainability, with Italy leading the interest in sustainability. Climate change continues to be the top topic of discussions between financial advisors and clients in Spain (74%), Italy (75%) and Germany (75%). “The majority of clients with sustainability preferences responded positively to the information provided by financial advisors to them, placing special emphasis on the importance of understanding these ESG requirements in order to take advantage of existing opportunities in this field,” they concluded.

Interest In Esg Investing Does Not Fade In The Face Of A Complex Economic Environment

World Nation News Desk
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