Three-quarters of Middle East and North Africa (Mena) financial advisers and wealth managers believe access to more ESG products will help them expand the most over the next three years, according to behavioural finance experts Oxford Risk.
The firm’s survey also found 91% believe that better technology surrounding ESG will be the biggest influence on growth.
The importance of ESG to both investment providers in the region and advisers is growing and 75% said it is already well-established as a factor behind the launch of new solutions.
Some 90% said it will become even more important for the design of new products over the next three years, while another 90% said it will become a more significant consideration for investors when choosing products.
Greg Davies, head of behavioural finance at Oxford Risk, said: “The importance of ESG in wealth management is well-established and companies which do not demonstrate a commitment to and focus on ESG investing will lose clients.
“Wealth managers who have the credentials and expertise will benefit as putting cash into new investments will greatly favour strong ESG propositions.
“That shouldn’t mean just paying lip service to ESG but making use of technology to grasp the opportunities and meeting the responsibilities of matching socially-minded investors to suitable ESG investments.”