Greater confidence in green credentials sought by investors
HIGH-PROFILE protests and campaigns have not managed to significantly mobilise capital from the private wealth and family office sector into green and sustainable finance, according to research from Guernsey Finance.
Although significantly more capital is finding a home in green investments, individuals and family offices appear to be looking for greater confidence in returns and in the green credentials of their investments.
The research, carried out with some 20 family offices and high net worth individuals, with a combined estimated worth of £25bn, and 50 service providers, earlier this year, showed more focus was needed in engagement with investment managers and investors on the aims of green and sustainable finance and the benefits of responsible investing.
In Guernsey, work to develop a green finance sector has included the establishment of the Guernsey Green Fund regulatory framework – to provide such confidence in the green credentials of investments.
‘Significantly more capital is finding a home in green investments, driven by the increased concerns of the younger generation of wealth owners,’ said Andy Sloan, deputy chief executive, strategy, at industry promotional agency Guernsey Finance. ‘But greater confidence in returns and greater confidence in the “greenness” of the underlying investment – the “twin confidences” – are both required to catalyse a modal shift in deployment of private capital to climate finance.’
Guernsey Finance launched the research report at a London event with Guernsey resident Stephen Lansdown, co-founder of Hargreaves Lansdown, who runs his family office business from the island and has considerable interest in green and sustainable investing and investing in Africa.