CIYIS Blog Posts
Millennials spurred growth in ESG investing. Now all ages are on board – CNBC
May 23, 2021 | Sustainability, Technology
The article clearly makes the case for ESG nevertheless it will take more than goodwill to retrofit existing infrastructure with renewable energy solutions. It will take among others Public–private partnerships that are innovative, outcome focused, and technology driven to address not only the environmental challenges but truly build the resilient, sustainable infrastructure we all envision for future generations.
The article talks about millennials turning 40 and the launching of Middle-Aged Millennials, a series exploring how the oldest members of this generation have grown into adulthood amid the backdrop of the Great Recession and the Covid-19 pandemic, student loans, stagnant wages and rising costs of living.
“Nine times out of 10 if you ask people, ‘Do you want to invest in a way that leaves a positive mark,’ they will say yes,'” says Harlin Singh, head of sustainable investments at Citi Private Bank. Also the article states 76% of older millennials think climate change poses a serious threat to society, according to a survey conducted by The Harris Poll on behalf of CNBC Make It in March that surveyed 1,000 U.S. adults ages 33 to 40 on a variety of topics. About one-third of millennials often or exclusively use investments that take ESG factors into account, compared with 19% of Gen Z, 16% of Gen X and 2% of baby boomers, according to the poll.
The difference in adoption is not because other generations aren’t interested in sustainability or investing in line with their morals: A 2019 report from Morningstar found that 72% of the U.S. population “Expressed at least a moderate interest in sustainable investing,” and the preference didn’t change significantly between generations.
With millennials set to inherit approximately $30 trillion over the next few decades, according to a report from MSCI Inc., an investment research firm, the financial industry and corporate America are expected to continue to create more and better sustainable investing options to appeal to them and their bank accounts.
Nevertheless McManus says growing awareness of the harm caused by climate change and increased attention paid to politics over the past few years have led to wider acceptance of ESG investing, irrespective of age.
In conclusion given the very real consequences of climate change on businesses and their bottom lines, for example, taking ESG factors into account is just smart long-term investing and has been embedded in most forward thinking and efficiency-driven business models for years.
Source: Millennials spurred growth in ESG investing. Now all ages are on board
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