News - ESG New Year resolutions - Standard Chartered Private Bank
It’s the start of a new year and the perfect opportunity to reflect on personal finances during 2021 and map out aspirations for 2022. We know that environmental, social and governance (ESG) investing has been a hot topic for some time. Indeed, our own Sustainable Investing Review 2021 reveals that 81% of those surveyed have an interest in sustainable investing. [Wealthy] individuals realise that these investments can have a positive environmental and social impact, in addition to risk-adjusted financial returns that help them meet their own long-term goals. January is a traditional time to make resolutions. So, whether it’s pledge is to start out, make sure the current plan is ticking over or looking to make changes and set new goals, here are five top tips to help UHNWIs keep their New Year ESG resolutions!
Five top tips
1. Be clear what you care about
It can feel like there is a lot of choice when it comes to ESG investing. You can focus investing on education, gender equality, climate action, clean energy, eradicating poverty and hunger, innovation, supporting children and youth, protecting wildlife to name a few! Ask yourself a few simple questions to narrow down what you’re most passionate about. What makes you sad, inspired or happy, drives you?
2. Decide what the impact is
Much like deciding where you want to make a difference is the choice about who could benefit from your sustainable investing, and when. Would you like the beneficiaries to be a particular demographic, like young children, in a certain geography? Or, do you wish to make an impact within a certain time frame?
3. Determine your contribution
It’s important to be realistic about how much you want to invest financially, and any disposable non-financial resources too. Also, consider whether this is a one-off or continuous investment. Think about how actively involved you’d like to be.
4. No time like the present
Some individuals put off making ESG investments because they believe the performance of their portfolio could suffer. But in truth, the opposite tends to be the case. Investors that embrace sustainability investment factors have shown they can significantly outperformed their peers. Think about whether and how ESG investing can play a part in your finances.
5. Get support
Talk to your financial or investment provider about your ESG aspirations. Not only to benefit from professional advice but also, you don’t want to get a few months down the line and lose momentum with your Resolution. Keep chatting to your Relationship Manager regularly! Frequent financial check-ups are a great way to make sure you’re in good shape to reach your sustainable investing goals.
Demir Avigdor, Market Head for Africa and Europe, Standard Chartered Private Bank, said: “The start of the year is always an ideal occasion to review your personal finances and determine any investment goals for the coming 12 months. Take the time to think about what impact you want to make with your investing, and whether your ESG aspirations or goals have changed.”
Nigerian female HNWI (Standard Chartered Private Bank client new to ESG investing), said: “I’ve been thinking about introducing ESG investments to my portfolio for some time and looking forward to finally biting the bullet this year. Climate change is an issue close to my heart and I really want to invest wisely to make a real difference.”
