Is investing for good reaching its tipping point?
Impact investing is indeed at a tipping point. Roughly 1/3 of all Family Offices in the United States invest in impact investing. And this trend will continue to increase for the foreseeable future. Why?
A 2019 report by BOA Merrill Lynch shows that US companies with high environmental, social and governance (ESG) rankings in the S&P 500 index have outperformed their counterparts with lower ESG rankings every year for the past five years. Not surprisingly, the amount poured into ESG-focused funds by US investors quadrupled in 2019 – with the majority of responsible investors citing performance as their main motivation.
A 2020 global survey found that nearly eight out of 10 millennials cite ESG investing as their top priority when considering investment opportunities. It also found that 86% of millennials are interested in sustainable investing.
What millennials are doing with their money matters. By 2030, millennials will hold five times as much wealth as they have today. In what is being called the biggest wealth transfer in human history, millennials are expected to inherit more than $68-trillion over the next decade or so from their baby-boomer parents – widely considered to be the wealthiest generation in history.