Search this website. You can use fund codes to locate specific funds

UK IFAs report major rise in ESG allocations since start of Covid-19 outbreak

  • 85% of UK IFAs have seen a rise in client requests to allocate capital to ESG-integrated funds since the start of the Covid-19 outbreak
  • 82% believe that the current crisis and its impacts will result in more individuals investing in pursuit of environmental, societal and governance goals in the future
  • Over three-quarters (78%) think investors would be motivated to divest from companies that have failed to support their employees or wider society through the crisis

London, May 7th, 2020: Since the beginning of the Covid-19 outbreak, UK independent financial advisers (IFAs) have observed a sharp rise in the number of investors seeking to tackle environmental concerns and improve society through their investments.

The pervasive impacts of the Covid-19 crisis seem to be driving a reassessment of the purpose and goals of investment, according to new research by the International business of Federated Hermes. A poll of 200 UK IFAs found that 78% believe that their clients would choose to divest from companies they deem to have failed to support their employees and wider society through the crisis.

82% reported an uptick in enquiries from investors about how their capital can be committed to combat the effects of climate change, raise governance standards and improve human rights. Expressions of interest have come from investors across a range of demographics; 42% of enquiries have come from investors aged under 40, while 36% have been from those aged 40 or over, countering the narrative that ESG investing is merely a trend among millennials.

The current crisis has further increased strong investor appetite for funds which integrate environmental, social and governance factors. 85% of UK IFAs have seen a rise in client requests to allocate capital to ESG-integrated funds since the start of the outbreak. 82% believe that the current crisis and its impacts will result in more individuals investing in pursuit of environmental, societal and governance goals in the future.

Commenting on the findings, Harriet Steel, Head of Business Development for the International business of Federated Hermes, said:

“The Covid-19 crisis is driving seismic change across markets, the economy and society, so it is no surprise to see that investors are reassessing the long-term aims and outcomes of their investments. The pandemic has radically reconfigured concepts of sustainability, reinforcing our long-held belief that investment and value creation must deliver more than just strong financial returns. These findings make clear that the crisis will be a catalyst for change as individual investors ascribe more weighting to the importance of ESG factors, and scrutinise the purpose of companies, and what they deliver for society, to an ever-greater extent.”

Latest Articles

All eyes on Sustainability this Earnings Season
Our dedicated commitment to sustainable wealth creation means we are not only busy forming financial expectations for the upcoming earnings season, but ESG expectations too.
New research shows Covid has accelerated the social awakening
New research from the Global Equities team at the international business of Federated Hermes shows that companies with good or improving social practices can potentially add up to 17bps each month to returns.
Federated Hermes launches residential brand Hestia and expands portfolio with two new acquisitions
The International business of Federated Hermes has today announced the launch of a new Residential brand – Hestia.
Economic Outlook: 2021 and beyond - a slow and winding road to economic recovery
In his latest Economic Outlook, Senior Economic Adviser Neil Williams summarises his expectations for the global economy in five main points.
EOS at Federated Hermes publishes new Corporate Governance Principles for 2021
EOS at Federated Hermes, the leading stewardship provider, has today published its 2021 UK Corporate Governance Principles. In a letter to 124 listed UK companies, EOS has outlined its expectations across a number of important strategic governance, environmental and social topics.
Federated Hermes managed assets see success in the GRESB 2020 results
A number of portfolios and assets managed by the international business of Federated Hermes have achieved success in in this year’s GRESB Real Estate Assessment results.

Press Contacts

Johnny Weir,
Head of Corporate Communications
Rachael Dowers,
Manager - Corporate Communications
Hannah Bellfield,
Assistant Manager - Corporate Communications
Harriet Hall,
Associate - Corporate Communications