ROOT
Why ESG investing is the ‘longer-term answer’ to the energy crisis
deVere has highlighted the “value, necessity and rewards” of sustainable investing.
Why ESG investing is the ‘longer-term answer’ to the energy crisis
deVere has highlighted the “value, necessity and rewards” of sustainable investing.
The global energy crisis has put a “sharp focus” on environmental, social and governance investing, according to deVere Group founder and CEO Nigel Green.
Mr Green said that while surging energy prices globally could delay the transition to cleaner energy, investors should be taking a longer-term view of the situation.
“They will see that the current energy crisis is a combination of factors — including ongoing geopolitical tensions to which there are no quick fixes, and infrastructure and supply issues — and that these problems are not going away,” he said.
“It will bring into sharp focus that rather than staying with fossil fuels, the longer-term answer to this and future energy crunches is ESG (environmental, social and governance) investing.”
According to Mr Green, “savvy investors” will move quickly to take advantage of the “undeniable value, necessity and rewards” that sustainable investing offers.
ESG investing is also set to be boosted by increasing support for ESG criteria from governments and regulators as well as an estimated US$30 trillion transfer in wealth to Millennials in the coming years who are more likely to seek out responsible investments.
Mr Green added that the COVID-19 pandemic has also led to an increased focus on how the health of the planet affects human health.
“What is perhaps more impressive is that those investments with robust ESG credentials are continuing to outperform the market and experience lower levels of volatility,” he said.
About 44 per cent of deVere’s clients globally reported that they had or were considering exposure to ESG investments, up from 26 per cent a year ago.
deVere also highlighted its own commitment to ESG, joining 18 global finance companies as founding signatories to the net-zero initiative backed by the United Nations with a commitment to achieving net-zero greenhouse gases by 2050.
“It’s becoming increasingly clear that the best way and most sustainable way to solve this and future energy crises is to accelerate the transition towards cleaner power,” said Mr Green.
“Investors, keen to get ahead of the curve as well as earn profits with purpose, will be more keenly seeking out the opportunities as the world scrabbles to mitigate the environmental, economic and social fallout of the current situation — a situation which is likely to be a constant risk.”
RELATED ARTICLES
Invest
Finity and Ortec Finance join forces to enhance climate risk analysis for Australian investment portfolios
In a significant move aimed at bolstering the financial sector's ability to tackle climate-related risks, Finity, Australia's leading independent actuarial and strategic analytics firm, has announced ...Read more
Invest
Australia’s 5% deposit guarantee accelerates: relief for buyers, reckoning for lenders
Bringing forward Australia’s expanded 5% deposit guarantee to 1 October 2025 changes the mechanics of first-home finance and the economics of mortgage risk overnight. By removing income caps and place ...Read more
Invest
Australia's performance test shake-up is rewriting the investment playbook
Australia’s performance test has been a powerful accountability tool—exposing laggards and accelerating consolidation. But industry bodies now back targeted reforms to stop the test from ...Read more
Invest
Financial Basics Community Foundation receives major grant to boost financial literacy for disadvantaged youth
In a significant step toward enhancing financial literacy among disadvantaged young Australians, the Financial Basics Community Foundation (FBCF) has secured a substantial grant from the MetLife ...Read more
Invest
Dynamoney appoints Brett Thomas as CEO to spearhead growth and innovation
Dynamoney, a prominent player in the commercial finance sector for Australian small and medium enterprises (SMEs), has announced the appointment of Brett Thomas as its new Chief Executive OfficerRead more
Invest
Brokers’ wishlist, nation’s payoff: approvals, tax and AI as the new housing‑finance flywheel
Mortgage brokers aren’t just pleading sectoral special interests. Their asks—faster planning approvals, targeted tax recalibration and scaled AI—are levers to lift national productivity, unlock ...Read more
Invest
Waikiki's wave of opportunity how investors are surfing growth and risk in Perth's southern shores
Waikiki, a coastal suburb in Perth’s south, is drawing capital for the rare mix of affordability, rental tightness and billion‑dollar defence‑led infrastructure nearby. Yet the market is not one‑way ...Read more
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
Invest
Finity and Ortec Finance join forces to enhance climate risk analysis for Australian investment portfolios
In a significant move aimed at bolstering the financial sector's ability to tackle climate-related risks, Finity, Australia's leading independent actuarial and strategic analytics firm, has announced ...Read more
Invest
Australia’s 5% deposit guarantee accelerates: relief for buyers, reckoning for lenders
Bringing forward Australia’s expanded 5% deposit guarantee to 1 October 2025 changes the mechanics of first-home finance and the economics of mortgage risk overnight. By removing income caps and place ...Read more
Invest
Australia's performance test shake-up is rewriting the investment playbook
Australia’s performance test has been a powerful accountability tool—exposing laggards and accelerating consolidation. But industry bodies now back targeted reforms to stop the test from ...Read more
Invest
Financial Basics Community Foundation receives major grant to boost financial literacy for disadvantaged youth
In a significant step toward enhancing financial literacy among disadvantaged young Australians, the Financial Basics Community Foundation (FBCF) has secured a substantial grant from the MetLife ...Read more
Invest
Dynamoney appoints Brett Thomas as CEO to spearhead growth and innovation
Dynamoney, a prominent player in the commercial finance sector for Australian small and medium enterprises (SMEs), has announced the appointment of Brett Thomas as its new Chief Executive OfficerRead more
Invest
Brokers’ wishlist, nation’s payoff: approvals, tax and AI as the new housing‑finance flywheel
Mortgage brokers aren’t just pleading sectoral special interests. Their asks—faster planning approvals, targeted tax recalibration and scaled AI—are levers to lift national productivity, unlock ...Read more
Invest
Waikiki's wave of opportunity how investors are surfing growth and risk in Perth's southern shores
Waikiki, a coastal suburb in Perth’s south, is drawing capital for the rare mix of affordability, rental tightness and billion‑dollar defence‑led infrastructure nearby. Yet the market is not one‑way ...Read more
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
