INSEAD article on investors’ climate engagement and financial returns

“Can Investors Save the Planet While Making a Profit?

“Sustainability is fast becoming a core investment focus. Here’s what the industry can learn from the most successful climate impact funds.

Globally, climate change has dominated the public space in the past couple of years. A vast increase in climate change articles in the last two years, emerging ‘climate idols’ such as Greta Thunberg and climate-related pop culture (e.g., flygskam being FT’s Word of 2019) have been just some of the indicators of this megatrend.

This has propped up a strong investor demand. To wit, 84 percent of millennials invest with a focus on environmental, social and governance (ESG) impact as their central goal as compared to less than 50 percent for baby boomers. Climate is now regarded as the top theme in impact investing. Given that an estimated US$68 trillion will be passed down from baby boomers over the next 30 years, with up to 80 percent of investment goals being reconsidered in the process, a significant flow of investment towards impact – specifically, climate change – is expected.”

Read the full article on INSEAD Knowledge:

Daniel Gospodinov (INSEAD MBA ’20J), and Claudia Zeisberger, INSEAD Senior Affiliate Professor of Entrepreneurship & Family Enterprise | July 30, 2020

Republished Courtesy of INSEAD knowledge