ESG investing

deVere: Pioneering Sustainable ESG Investing

In the modern era, there’s a rising trend to put money into ESG, a methodology that combines investment process, asset management, and socially responsible principles.

ESG-friendly companies are those that encourage and promote sustainable practices and other important positive features.

If you are passionate about your investments impacting the world around you positively, like we are, then you’ve arrived at the right place.

To gain comprehensive insights into our investment process, we urge you to watch our informative ESG investing video.

What is ESG Investing?

ESG stands for three primary factors:

Environmental includes climate change policies, carbon footprint, water usage, and renewable energies.

Social encompasses workers’ rights and protection, client satisfaction, and workplace health and safety.

Governance involves board diversity, corporate transparency, shareholder rights, compensation practices, and internal control processes.

ESG Investing is a type of socially responsible investing that considers not only a company’s financial returns and performance but also its impact on its employees, stakeholders, and the environment.

The Rise of ESG Investing

The threats posed by climate change – affecting economies and societies globally – serve as significant risk amplifiers, thus, cementing it as the most pivotal issue of our era.

The World Economic Forum (WEF) in its 2020 risk report shed light on the prevailing scenario, identifying the top five probable risks as being environmental.

In terms of impact, four out of the top five risks were seen as both social and environmental in nature.

Did you know that the world’s ocean temperatures in 2021 surpassed all previous records? This fact underscores the alarming reality that the climate is undergoing changes at a pace exceeding earlier predictions.

From escalating frequencies of severe storms to unparalleled heatwaves and floods, from an escalating rate of species extinction to the rise in sea levels and expanding desertification, the repercussions of anthropogenic global warming are increasingly evident.

However, we are still in a position to alter our trajectory and mitigate the worst outcomes of this rapidly evolving climate scenario.

At the onset of 2020, deVere Group was among the pioneers to pinpoint ESG investing as this decade’s ultimate investment megatrend. We recognised that it would permeate all sectors, but the rapid development and growth of this trend exceeded our predictions.

During the COVID-19 pandemic, many companies with a strong ESG track record tended to fare better than those that did not incorporate ESG standards into their operations.

This realisation underscored the importance of recognising and embracing the rise of ethical investments in the financial world.

ESG Investing vs Impact Investing

As we have seen, environmental, social, and corporate governance (ESG) investing concentrates on companies which are endeavouring to limit their negative impact on society.

Impact investing is similar to ESG in that both types of investments offer a financial return and are in line with the investor’s social conscience, but there are some key differences between the two.

ESG	Impact Investing
Looks predominantly at the company’s operations; provides a framework for evaluating the company.	Pays more attention to the products and services the company offers.
Usually involves publicly traded assets.	Usually involves private funds.
The addition of ESG factors is used to improve traditional financial analysis.	The investments need to have a direct, measurable social and/or environmental positive effect.

The Significance of ESG Investing at deVere Group

Our Commitment to the Net Zero Initiative

Recognising the profound responsibility that accompanies our reach and resources at deVere Group, we emphasise our commitment to safeguarding the environment, promoting social advancement, advocating diversity, and equality, and ensuring ethical, well-governed decision-making.

We are proud to be among the 18 founding signatories of the UN-backed Net Zero Initiative. This influential alliance of global finance heavyweights is dedicated to accelerating the transition to a net-zero financial system.

Our involvement signifies our pledge to align all our products and services with the objective of attaining net-zero greenhouse gas emissions by 2050, along with setting substantial interim targets for 2025.

This commitment complements our efforts to set science-backed targets aimed at reducing operational emissions in line with limiting the global temperature increase to 1.5 degrees Centigrade.

deVere Group CEO and founder, Nigel Green, regards this as a critical stride in our journey towards a net-zero economy.

He says, “We are honoured to be part of this initiative where influential financial firms are leveraging their resources and commitment to attain their respective targets. Our involvement in this alliance, alongside internationally recognized standard-setting organisations, will help make a tangible, measurable impact”.

Our fellow founding signatories comprise globally esteemed organizations like BDO, Bloomberg, Campbell Lutyens, Deloitte, EY, Grant Thornton, KPMG, The London Stock Exchange Group, Minerva Analytics, Moody’s, Morningstar, MSCI, PwC, SGX, Solactive, S&P Global, and SSE.

deVere's Ongoing ESG Commitments

deVere Vault: This digital-only, paperless banking solution significantly curbs waste, deforestation, and carbon emissions. It exemplifies our commitment to environmental conservation for both clients and employees.

Guidance on Socially Responsible Investing: We provide free, independent guidance to clients on socially responsible investing. Our goal is to manage $2bn worth of assets in environmental, social, and governance investments within the next five years. We emphasize transparency in our investment advice to avoid ‘greenwashing‘. This includes the consideration of various factors such as core values, in-fund reporting, voting policies, the use of in-house or third-party research, and adherence to the United Nations’ Principles of Responsible Investment (PRI).

Sustainable Investing Products: We are actively developing our own accredited sustainable investment products. These funds not only align with ESG values but also offer consistent returns, often outperforming the market and offering lower volatility.

ESG-Related Surveys: We conduct and publish regular ESG-related surveys to identify trends and provide insights for both the industry and the public.

Technological Adoption: Our judicious use of technology has led to a 75% reduction in staff travel worldwide since March 2020. We are also progressing towards complete digitalisation of our systems and documents, aiming to become entirely paperless within the next two to three years.

Diversity and Inclusion: Demonstrating our commitment to diversity and inclusivity, we appointed Beverley Yeomans, our Chief Operating Officer, as our Chief Diversity Officer (CDO). This step solidifies our resolve to foster an even more inclusive, diverse, and equitable organization spanning the globe.

Recycling and Green Initiatives: All of our offices have established recycling systems. Where possible, we are installing green walls as part of our commitment to the environment.ESG Training Programmes: We provide comprehensive ESG training programmes to all our employees, emphasising the importance of ESG issues and their potential impacts on our clients’ investments.

ESG Training Programmes: We provide comprehensive ESG training programmes to all our employees, emphasising the importance of ESG issues and their potential impacts on our clients’ investments.

Guiding Your ESG Investment Choices

Our investment managers at deVere Group are dedicated to delivering an enhanced investment process for our clients, considering both financial returns and ESG factors.

As stated earlier, we offer free, independent guidance on socially responsible investing, with an aim to position a significant amount of our client’s assets under advisement into ESG funds.

Your choice to engage in ESG investing is a powerful way to influence a more sustainable and equitable future while also seeking competitive returns.

ESG Investing: The Road Ahead, Taking the Next Step with deVere Group

The growth of ESG investing will continue due to several reasons, including increased awareness of social, labour, and human rights issues, as well as the growing concern over environmental issues such as climate change.

At deVere Group, we are fully committed to seizing the opportunities ahead in this investment process and are prepared to face the challenges in order to create a sustainable future for all.

To choose the best ESG investment funds that align with your values and financial goals, our highly qualified ESG investment consultants are ready to guide you. Please contact us to learn more about how to incorporate ESG into your financial portfolio.

Your investments can help shape a more sustainable and equitable future, and we are here to help guide that journey.

FAQs

Why Choose ESG Investing

Choosing ESG investing ensures your investment choices align with your environmental and social priorities.

To choose the best ESG investment funds that align with your values and financial goals, our highly qualified ESG investment consultants are ready to guide you in the right direction.

Contact us to learn more about how to incorporate ESG into your financial portfolio.

Exploring the Top ESG Investment Funds

There is a wide range of ESG funds available for investment. While you could undertake the task of researching each one individually to determine your preferences, we strongly advise seeking guidance from our seasoned ESG investment consultants.

Our financial advisors offer a multitude of benefits, including their comprehensive understanding of the current financial landscape, their ability to offer valuable advice, and their expertise in guiding your investment decisions in the right direction.

The Rationale Behind ESG Investing

If you’re a newcomer to ESG investing, a great starting point is to consider companies that align with your values, particularly those that demonstrate ESG responsibility. You can identify these companies by doing your own research, keeping abreast with the news, and reading business-related publications.

The main reason to opt for ESG investing is to ensure that your investment choices meet your priorities as far as environmental and social issues and problems go. That means that you won’t want to invest in companies that contribute to these problems. ESG investments often offer higher returns than their non-ESG counterparts.

Additionally, ESG investments frequently yield higher returns than their non-ESG counterparts, providing both ethical satisfaction and financial gain.