Pioneering Sustainable ESG Investing

In the modern era, there’s a rising trend to put money into ESG funds, a methodology that combines investment processes, asset management, and socially responsible principles.

ESG-friendly companies encourage and promote sustainable practices and other important positive features.

If you are passionate about your investments impacting the world around you positively, like we are, then you’ve arrived at the right place.

What is ESG-based Investing?

Investors look for ESG companies to invest in. ESG stands for?three primary factors:

Environmental factors include climate change policies, carbon footprint, water usage, and renewable energies.

Social factors encompass how a company interacts with society, including its relationships with employees, customers, suppliers, and the communities in which it operates. This includes labour practices, workplace health and safety, diversity and inclusion, human rights, client satisfaction, and community engagement.

Governance factors focus on a company’s leadership, structure, policies, and management. This includes board diversity, executive compensation, corporate transparency, shareholder rights, compensation and ethical business practices and internal control processes.

The Rise of ESG Investing Trends

The threats posed by climate change – affecting economies and societies globally – serve as significant risk amplifiers, thus cementing it as the most pivotal issue of our era.

The World Economic Forum (WEF), in its 2020 risk report, shed light on the prevailing scenario, identifying the top five probable environmental risks.

Did you know the world’s ocean temperatures in 2021 surpassed all previous records? This fact underscores the alarming reality that the climate is changing faster than earlier predictions.

From escalating frequencies of severe storms to unparalleled heatwaves and floods, from an escalating rate of species extinction to rising sea levels and expanding desertification, the repercussions of anthropogenic global warming are increasingly evident.

However, we are still in a position to alter our trajectory and mitigate the worst outcomes of this rapidly evolving climate scenario.

At the onset of 2020, deVere Investment was among the pioneers to pinpoint ESG investing as this decade’s ultimate investment megatrend. We recognised that it would permeate all sectors, but this trend’s rapid development and growth exceeded our predictions.

During the COVID-19 pandemic, many companies with a strong ESG track record tended to fare better than those that did not incorporate ESG standards into their operations.

This realisation underscored the importance of recognising and embracing the rise of ethical investments in the financial world.

We believe in Sustainable ESG Investing

The growth of ESG investing will continue for several reasons, including increased awareness of social, labour, and human rights issues and the growing concern over environmental issues such as climate change.

At deVere Investment, we are fully committed to seizing the opportunities ahead in this ESG investment process and are prepared to face the challenges to create a sustainable future for all.

We are committed to allowing investors to align their investment portfolio with their ethical beliefs over the medium to long term. Our ESG offering provides clients with various options that suit all risk appetites and growth objectives.

The Benefits of Sustainable ESG Investing

ESG investing offers several benefits that go beyond just financial returns:

Risk Management

Companies with strong ESG practices tend to be better equipped to manage risks related to environmental regulations, social controversies, and governance issues. Investing in these companies may lead to lower risk exposure.

Long-Term Performance

Studies have suggested that companies with robust ESG practices may perform better over the long term. Efficient resource management, strong governance, and positive social impact can contribute to sustained growth.

Resilience

Companies that are mindful of their environmental impact and have strong community relationships tend to be more resilient in economic downturns, regulatory changes, and social challenges.

Alignment with Values

ESG investing allows individuals and institutions to align their investments with their ethical and social values. This can provide a sense of satisfaction by supporting companies that demonstrate responsible behaviour.

Attracting Capital

Companies with strong ESG credentials often find attracting capital easier as more investors become interested in sustainable and responsible investments. This can lead to improved access to funding and potentially lower borrowing costs.

Innovation and Adaptability

Focusing on ESG criteria encourages companies to innovate and adapt to changing societal and environmental needs. This can lead to the development of new technologies, products, and services aligned with sustainability goals.

Regulatory Compliance

With increasing regulations around environmental protection, labour practices, and governance, companies that proactively address ESG concerns are better positioned to comply with evolving regulatory requirements.

Our Commitment to the Net Zero Initiative

Recognising the profound responsibility that accompanies our reach and resources at deVere Investment, we emphasise our commitment to safeguarding the environment, promoting social advancement, advocating diversity and equality, and ensuring ethical, well-governed ESG-based investing decision-making.

We are proud to be among the 18 founding signatories of the UN-backed?Net Zero Initiative. This influential alliance of global finance heavyweights is dedicated to accelerating the transition to a net-zero financial system.

Our involvement signifies our pledge to?align all our products and services?with the objective of attaining net-zero greenhouse gas emissions by 2050 and setting substantial interim targets for 2025.

This commitment complements our efforts to set science-backed targets aimed at reducing operational emissions in line with limiting the global temperature increase to 1.5 degrees Centigrade.

deVere CEO and founder?Nigel Green, regards this as a critical stride in our journey towards a net-zero economy.

“We are honoured to be part of this initiative where influential financial firms leverage their resources and commitment to attain their respective targets. Our involvement in this alliance, alongside internationally recognised standard-setting organisations, will help make a tangible, measurable impact”.

Our fellow founding signatories comprise globally esteemed organisations like BDO, Bloomberg, Campbell Lutyens, Deloitte, EY, Grant Thornton, KPMG, The London Stock Exchange Group, Minerva Analytics, Moody’s, Morningstar, MSCI, PwC, SGX, Solactive, S&P Global, and SSE.

deVere's Ongoing ESG Commitments

• deVere Investment app: This digital paperless investment solution significantly curbs waste, deforestation, and carbon emissions. It exemplifies our commitment to environmental conservation for both clients and employees.
• Guidance on Socially Responsible Investing: We provide free, independent guidance to clients on socially responsible investing. Our goal is to manage $2 billion worth of assets in environmental, social, and governance investments within the next five years. We emphasise transparency in our investment advice to avoid greenwashing. This includes considering factors such as core values, in-fund reporting, voting policies, in-house or third-party research use, and adherence to the United Nations' Principles of Responsible Investment (PRI).
• Sustainable ESG Investing Products: We are actively developing our own accredited sustainable investment products. These funds not only align with ESG values but also offer consistent returns, often outperforming the market and offering lower volatility.
• Technological Adoption: Our judicious use of technology has led to a 75% reduction in staff travel worldwide since March 2020. We are also progressing towards digitalising our systems and documents to become entirely paperless within the next two to three years.
• Diversity and Inclusion: Demonstrating our commitment to diversity and inclusivity, we appointed Beverley Yeomans, our Chief Operating Officer, as our Chief Diversity Officer (CDO). This step solidifies our resolve to foster an even more inclusive, diverse, and equitable global organisation.
• Recycling and Green Initiatives: All our offices have established recycling systems. Where possible, we are installing green walls as part of our commitment to the environment.
• ESG Training Programmes: We provide comprehensive ESG training programmes to all our employees, emphasising the importance of ESG issues and their potential impacts on our clients’ investments.

Please note, the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.

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