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

Federated Hermes appoints Gemma Corrigan as Head of Policy and Advocacy
Gemma will develop and lead the implementation of the firm’s advocacy programme
Federated Hermes forecasts what lies ahead for the rest of 2021
The investment floor share outlooks for the rest of the year
Wellington Place in Leeds secures £87.8million financing
The international business of Federated Hermes and Canada Pension Plan Investment Board (CPP Investments) have secured a loan facility on Wellington Place, their jointly owned business park in Leeds city centre.
Federated Hermes reveals proprietary database to quantify total impact of AUM and holdings on behalf of clients
Our Impact Database provides clients with indication of how their capital allocation is helping achieve positive impact
Federated Hermes adds sales expert Mike Daly to UK Wholesale team
The international business of Federated Hermes has announced the hire of Mike Daly as Sales Director
Economic Outlook: can things ‘only get better’?
In his latest Economic Outlook, Senior Economic Adviser Neil Williams summarises his expectations for the global economy.

Press Contacts

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