Millennials are driving environment, social and governance investing
Prioritisation of ESG factors as the basis for investment may well be the catalyst for indefinite change in business and market investment
Millennials — those now aged between 24 and 39 — are typically entering or are in the midst of their prime earning years. More important, millennials are set to become the beneficiaries of what’s become known as “the Great Wealth Transfer” — in other words, the generation that, overall, will inherit handsomely from Baby Boomer family benefactors and ultimately those from Generation X in the coming years.
According to a report by MSCI, millennials account for 23% of the global population. Analysts predict that upwards of $30-trillion is already being transferred by Baby Boomers to younger generations and this will continue for decades to come. Unlike millennials, prior generations’ approaches to savings and investment prioritised returns over governance and sustainability factors, with a focus on savings and ultimately retirement. However, data and emerging trends show that millennials’ prioritisation of environment, social and governance (ESG) factors as the basis for invest...
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