In her recent article, featured on The Asset, Maria McDermott, Business Development Consultant – Asia at Jersey Finance, explores how international finance centres are evolving to meet the accelerating demand for ESG in the Asia market.
A new holistic and coherent way of thinking is causing investors in Asia to rethink the best jurisdictions to fulfil their investment objectives. This article highlights three impacts of the rise in ESG for next-generation investors in Asia:
1. More family offices are integrating ESG factors into investments
“… some of them are uniquely placed to make significant investments without being under quite the same pressure to make returns in the shorter term as other institutions.”
2. Trustees are under pressure
“… there are also scenarios where the ESG investment focus of the next-gen/beneficiaries of trusts do not match the original investment strategies of trusts and conflicts with the intention of the settlors, and places trustees in a difficult position, possibly resulting in beneficiaries claiming the trustees have failed to fulfil their duties.”
3. Danger of greenwashing
“… investors will have mounting concerns about the dangers of greenwashing and will want reassurance about how their investments are deployed. Market players, with their digital partners, are also developing measurements and analysis tools to provide investors with the confidence they seek.”
As a leading international finance centre, Jersey will continue to adapt to meet their investment objectives, whilst also having a positive impact on the world.