A new survey shows that COVID-19 is accelerating the need for a more sustainable approach to investing – and highlights that start-ups will play a key role in tackling sustainability challenges that lie ahead.
• 86.7% believe responsible investing credentials as important or more important when choosing investments since the start of the crisis
• 86.9% think environmental sectors are as attractive or more attractive as an investment since the start of the crisis
• 61% of respondents said that environmental, sustainability and governance issues were considerations in making an investment decision
• 77% of respondents believe small, innovative companies have a major part to play in tackling sustainability challenges
Vala Capital, the entrepreneur-led venture capital firm who carried out the survey with WealthClub, said the survey reinforces the notion that increasing numbers of investors are looking for sustainable products and services.
Max Middleton, Vala Capital Fund Manager said, “Coronavirus has forced a reset presenting a unique opportunity to make meaningful change, presenting huge opportunities for ventures and investors. For so long, capital has been without an agenda other than returns. It is only been in recent years that many investors have been investing more with 'head and heart'. We now need to ensure there are ‘caps and collars’ around how capital is deployed in start-ups – making sure that every VC has the mandate to deploy capital in a way that funds a sustainable transition.”
Alex Davies, Chief Executive WealthClub added, “these results clearly show that there is significant demand from high-net-worth investors for investments that look to tackle the world’s problems and provide us with a sustainable future. But it is not all about doing good, some of these investments, which are solving significant problems could also reap huge financial rewards for investors.”