Mike Stimpson, Partner at Saltus, comments on the concerns HNWIs have with investing in ESG funds.

High-Net-Worth Individuals (HNWIs) have an appetite for Environmental, Social, and Governance (ESG) investments but scepticism and mistrust are preventing most from investing in green and social impact funds according to the third Saltus Wealth Index report.

Saltus surveyed more than 1,000 people in the UK with investable assets of more than £250,000 and found that the vast majority (80%) do see climate change as a priority. And while concerns about the level of returns generated from ESG is still a major barrier, cynicism and mistrust are also top reasons why most do not hold ESG investments.

The research found that, despite the fact that 44% of HNWIs do invest in ESG, there are rising levels of scepticism around the robustness and legitimacy of green and social impact funds, as well as high levels of apathy.

Commenting on the shift in investment priorities and wider investment trends, Mike Stimpson, Partner at Saltus said:

Concern about ESG investing is perhaps an inevitable consequence of the sector gaining maturity and being held to the same standards as other parts of the portfolio. It seems likely that this sector will be a permanent feature of many investors’ decision making. This kind of questioning is consistent with the approach a robust manager would take with any investment, but it does speak to the need for transparency and a common set of standards and definitions.

Full release: Less than half of High-Net-Worth Individuals investing in ESG due to scepticism and perceived lack of returns

Contact: Lydia Parr, Boldspace, 020 4526 5169 / saltus@boldspace.com