ESG Wealth Management: What Does The Future Hold?

Looking to invest based on companies' environmental, social, and governance (ESG) commitments? Explore ESG wealth management and future trends.

The factors that drive investment decisions can be deeply personal. For example, you may choose to only invest your wealth in companies with strong environmental, social, and governance (ESG) commitments and practices that align with moral stances you hold or causes you support. In this case, it would benefit you to explore ESG wealth management.

In this blog post, we’ll explain ESG wealth management, discuss how it’s evolved over the past few years, and discover what the future of ESG investments likely holds.

ESG Wealth Management, Explained

ESG wealth management is a type of socially responsible investing that first became popular about a decade ago. ESG investment funds include stocks of companies that meet certain environmental, social, and governance criteria, making them an attractive option for socially conscious investors.

These funds can contain stocks of companies within any industry, and the criteria for what constitutes such socially responsible investing currently varies between each fund.

The important point to remember about ESG wealth management is that, like any investment strategy, it should be congruent with your broader financial plan. Wealth management should always consider your needs in the areas of tax planning, insurance, retirement savings, and estate planning, in addition to investments. Your wealth management plan should also align not only with your financial goals, but with your personal values.

The Evolution Of ESG Wealth Management

ESG investing has become increasingly popular over the past three years as the number of ESG funds on the market has doubled. One factor driving this shift is that women have more wealth than ever before, and they are more inclined than men to be interested in ESG investing.

In addition, 2020 saw a heightened focus on issues of social justice, highlighted both in traditional and digital media around the globe. Greater awareness of these topics has led more investors to explore ESG wealth management.

Finally, ESG investing is also gaining more attention because it’s becoming more accessible. Today, there is a larger number of ESG funds available to investors than in previous years, and it’s now widely accepted that ESG investors don’t have to sacrifice solid returns to stake a values-based claim in the market. Large financial firms have picked up on the demand for ESG funds and have begun training analysts and creating products in response to this shift in consumer preferences.

What does the future hold?

ESG investing trends will likely continue to impact the wealth management industry over the next several years. The pressure is increasing for mutual fund companies to sell ESG offerings, and this demand will continue to accelerate. Fortunately for investors, access to information about ESG criteria is more clear and reliable than ever before, and it’s no longer as difficult to obtain data on company practices because regulatory changes and consumer demand have required companies to make this information more accessible.

Greater availability of and transparency around ESG funds will also improve returns for investors. After all, when a company makes a commitment to environmental sustainability or social responsibility, that’s a long term strategy with the potential to pay dividends.

Interested in learning more about ESG wealth management?

Investing based on your personal values is a powerful way to drive change while growing your wealth and working toward your financial objectives. If you have questions about how to get started with ESG wealth management, our team of experts at Curio Wealth is here to help.

Schedule a call with us today to book a complimentary consultation where we’ll explore your financial and investment goals and walk you through the process of how we can create a plan that’s right for you.

Important Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Curio Wealth, LLC [“Curio Wealth”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Curio Wealth. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Curio Wealth is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Curio Wealth’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at Please Note: Curio Wealth does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Curio Wealth’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a Curio Wealth client, please contact Curio Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

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