Research from Barclays Private Bank with Campden Wealth and Global Impact Solutions Today shows that high new worth investors plan to nearly double their impact investing by 2025.
The report says the proportion of the wealthy investors allocating more than 20% of their portfolio to impact investing is expected to increase from 27% to 39% as soon as next year, and 27% are predicting to allocate more than 50 per cent within five years from now. As such, the average portfolio allocation to impact investing amongst these investors is expected to increase from 20 per cent in 2019 to 35 per cent by 2025.
Interviewing individuals and family offices with an average net worth of $876million, the report found that 87% investors say climate change influences their investment choices and 66% say that COVID-19 is likely to broaden their risk assessment to include more ESG factors. 39% also say they would like to know the carbon footprint of their portfolio to inform their investing.
Dr. Rebecca Gooch, Director of Research at Campden Wealth says, “Globally, over $30 trillion is now being invested sustainably and this trend towards responsible investment is catching on rapidly within the private wealth community. A notable proportion of wealth holders are now engaged and there are expectations, particularly since COVID-19, for a considerable hike in their investment over the coming years.
“Wealth holders see the challenging state of the world, and the risks and vulnerabilities both individuals and businesses face due to COVID-19 and climate change, and they want to act. Here is where smart investment and deep pockets can make a real difference in impact and ESG investment. For many, responsible investing is not only the ethical thing to do, but it is simply good business practice.”