Global Challenges Highlight The Value Of ESG Analysis

• Published date: 31 January 2023
• Subject Matter: Finance and Banking, Financial Services
• Law Firm: Jersey Finance Limited
• Author: Jersey Finance

At our Jersey Finance Private Wealth Conference 2022 on 27 September, thought leaders on subjects from geopolitics to sustainability set out what recent trends mean for private wealth advisers and their clients. Read a synopsis of the discussion below

Lord Chris Patten, Chancellor of the University of Oxford, highlighted key recent events, transcending the geopolitical landscape. He suggested that increasing authoritarianism of China and Russia, a national-level governance concern, is manifesting into economic and financial damage.

"Ukraine is undoubtedly providing a headwind and the Chinese Communist Party's concerns about globalisation, the internet and urbanisation led to two damaging responses", he said, "that mean it will be 'lucky' to achieve 2.5% growth."

The first response was a "crackdown on civil society". The second was a clampdown on the private sector, focussed on the tech sector, despite it contributing the majority of tax, growth and innovation in China. Lord Patten intimated: "The rebalancing in favour of state-owned enterprises and cracking down on the private sector is very bad for China's medium- and long-term prospects."

Innovation in investing

A panel of experts discussed how the private wealth industry is innovating to accommodate differing generational attitudes towards asset allocation.

The next generation is more concerned about sustainability, according to Jordan Williams, Client Partner, Artorius. "It definitely wants to be more involved in the decision-making process. They are the custodians of family wealth and want to...get the right advice. ESG concerns are high on their agenda."

Charlotte Thorne, Founding Partner of Capital Generation Partners, added: "The data, particularly on ESG, is beginning to cohere around useful themes."

Rosie Bullard, Partner - Portfolio Manager, James Hambro & Partners, said she is thinking about how her advisory can adapt reporting and metrics so they become more valuable. "Every single client has different values and points that are important to them from a sustainability perspective."

Risk mitigation in a transparent world

The second panel concentrated on risk mitigation, finding that Jersey's international finance centre has maintained its...