Time is Now for Global ESG Regulation, says Nigel Green

A global regulatory framework for environmental, social and governance (ESG) investing is now urgently required, says Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organisations.

The ‘call to action’ from Nigel Green comes as major financial institutions are handling a massive uptick of inflows into the sector but at the same time facing accusations of inconsistency in their approach to sustainable impactful investments.

On the matter, Green said “environmental, social and governance investing is this decade’s ultimate investment megatrend – and it has been accelerated since the pandemic began.” 

He further added “there’s been a dramatic increase of inflows into the sector from both retail and institutional investors as it has become clearer than ever that human health is reliant upon healthy ecosystems; that we need to ensure the sustainability of supply chains; and that those companies with robust corporate governance and good business practice fare better in difficult times and are ultimately best-positioned for the future.”

He continues: “The trend is unlikely to slow down in a post-pandemic world. Millennials, who are statistically more likely to seek responsible investment options, are set to become the major beneficiaries of the largest inter-generational transfer of wealth – an estimated $30trillion over the next few years.” 

“In addition, recent research reveals that the majority of environmental, social and governance investments have outperformed their non-sustainable counterparts over the last year and have had lower volatility. This will only serve to attract more investors,” Green opined.

Given the continuing and increasing demand, Green said that the regulatory landscape must reflect the situation.

The deVere CEO concluded “a robust standardised regulatory framework would make the sector even more attractive, which will then help investors reach their financial goals whilst proactively protecting people and the planet.”