Unlock private money for climate cause: deVere

Yasmine Raso

Senior Journalist, Financial Newswire

4 November 2022

In the leadup to the 2022 United Nations Climate Change Conference (COP27) held in Egypt later this week, Nigel Green, deVere Group chief executive, has signalled the importance of “unlocking” private finance to support the climate change cause.

Green said the onus also lies on financial advisers to explain the issues of “human-inflicted environmental damage” and its impacts on long-term financial returns and to highlight the “clear” financial benefits if they act now.

“I hope COP27 acts as a catalyst to boost private finance inflows into the cause,” he said.

“Climate change is a key defining issue of our time. It will be a critical determinant in long-term financial returns, and the highest net economic benefit is reducing the impact of climate change.

“In short, we’re running out of time. The scale and seriousness of the problems mean that solving them will not only take political and social will, it will also take trillions of dollars.”

The chief executive said while it was “critical” that private finances are “mobilised in the battle” against climate change, this can only be achieved if all sectors actively promote the values and benefits of environmental, social and governance (ESG)-based investing.

“If we fail on this, the level of finance will simply not be available, nor at the pace necessary, to halt the catastrophic effects of global warming,” Green said.

“Clients’ investment strategies also benefit. Funds investing in entities with robust ESG credentials have outperformed their benchmarks over recent years.

“From a risk management point of view, including these companies in portfolios is, clearly, a sensible decision to take.”

Green said the summit commencing from Sunday is “an opportunity for our planet that cannot afford to be squandered”, as it builds on the existing work in the industry to create awareness of ESG investing and ensure “future-resilient returns” for clients.