More than three quarters (77 per cent) of millennials cite environmental, social and governance (ESG) investing as a top priority when considering potential investment opportunities, according to the deVere Group.

Its survey found that “traditional factors” were still important, with anticipated returns ranked as a priority by 10 per cent of those surveyed and past performance by 7 per cent.

Risk tolerance and tactical allocation were less of a concern though, and were cited as a top priority by just 4 and 2 per cent of respondents respectively.

The survey collected views of 1,125 people from around the world, including the UK, Western Europe, the Middle East, Africa, North America, Australia, India, ASEAN and East Asia.

Commenting on the results, deVere CEO and founder, Nigel Green, said: “Millennials appear to be leading the charge in socially responsible and impactful investing. They are keen to look for investment solutions that are progressive and forward-looking.

“As responsible investing becomes increasingly mainstream, and millennials become the major beneficiaries of the transfer of wealth, we can also expect institutional investors, such as pension funds, amongst others, to pile into ESG over the next few years.”

However, this follows recent research from ShareAction which stipulated that pension schemes were ‘skirting’ their climate change duties.

Green added: “ESG issues are now the top priority for millennials. They understand that it is perfectly possible - and increasingly necessary - to make a profit while positively and proactively protecting people and the planet.

“These principles will fundamentally reshape the retail and institutional investment landscape in the next decade.”

This was also reflected in recent research by Investec Asset Management, which found that investing for good and for financial gain were no longer considered mutually exclusive by savers, with 83 per cent believing it is possible to make competitive returns.

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