By Dela Ahiawor
Nigel Green, the Chief Executive Officer (CEO) of deVere Group has noted that Environmental, Social and Governance (ESG) investing (also known as Sustainable Investing) has increased since the emergence of the Covid 19 pandemic and has become this decade’s ultimate investment megatrend. He went on to say: “The trend is unlikely to slow down in a post-pandemic world.”
In a press note on May 5, Nigel Green who is also the founder of deVere group, one of the world’s largest independent financial advisory and fintech organisations said: “There’s been a dramatic increase of inflows into the sector from both retail and institutional investors as it has become clearer than ever that human health is reliant upon healthy ecosystems; that we need to ensure the sustainability of supply chains; and that those companies with robust corporate governance and good business practice fare better in difficult times and are ultimately best-positioned for the future.”
According to Nigel Green, recent research shows that: “The majority of environmental, social and governance (ESG) investments have outperformed their non-sustainable counterparts over the last year and have had lower volatility- this will only serve to attract more investors.”
“The time is now for the establishment of a global regulatory framework for ESG investing, considering the momentum of the sector.” The deVere CEO stated.
This will provide greater protections for those investors who are looking for profits with purpose. It will also help to reduce ‘greenwashing’, which is where an investment or company gives an inaccurate impression over its green, socially responsible or corporate credentials.
“Given the continuing and increasing demand for ESG investing, the regulatory landscape must reflect the situation. Regulators need to catch-up. Initiatives that began in the EU are now spreading worldwide, but much more needs to be done, at a faster pace and with a joined-up approach. There remains a startling lack of consistency in definitions and data.” The CEO added.
The call to the establishment of a global regulatory framework for ESG investing by the deVere head honcho, comes as major financial institutions are handling a massive uptick of inflows into the sector but at the same time facing accusations of inconsistency in their approach to sustainable impactful investments. “A robust standardized regulatory framework would make the sector even more attractive, which will then help investors reach their financial goals whilst proactively protecting people and the planet.”