Nigel Green of the deVere Group has said the coronavirus pandemic will drive ESG investing ‘skywards’.

The CEO of the investment group said in a letter to investors that the pandemic and its economic fallout will trigger a ‘skyward surge’ in sustainable, responsible and impactful investing over the next 12 months. He gave three reasons for his forecast:

Investments that score well in terms of ESG credentials often outperform the market and have lower volatility over the long-run. Data released so far have shown that ESG funds have outperformed during the pandemic.

The coronavirus pandemic has underscored the vulnerability and fragility of societies and the planet. “It has underscored the complexity and interconnectedness of our world in terms of demand and supply, in trade and commerce – and how these can be under threat if not sustainable.”

Green added: “Third, demographic shifts will support the trend. Millennials – those who were born in the time period ranging from the early 1980s to the mid-1990s and early 2000s – cite ESG investing as their top priority when considering investment opportunities.“This is crucial because the biggest-ever generational transfer of wealth – likely to be around $30trn – from baby boomers to millennials will take place in the next few years.”