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A Wealth of Opportunity for Sustainable Investors
- Jeremy Wickremer
- Jul 17
- 6 min read
Some of us have worked hard to build wealth, some have inherited it, and some were born into it. Wherever you sit, as investors we are increasingly looking to direct our wealth towards sustainable investments. That could range from allocating a percentage, to committing 100% of a portfolio to sustainable funds, to investing directly in sustainable start-ups. An investor’s motivation is as varied as the plethora of investment opportunities, and include personal preferences, sector expertise, and a mix of risk management and opportunity.
Ahead of our RISE Awards – which recognise excellence among wealth managers, as well as sustainable startups and other service providers – Sustainable Times caught up with some of the leading experts in the UK wealth management space to get their thoughts on achieving financial returns while delivering on sustainability-related goals.
From exclusionary to positive outcomes
Evelyn Partners is one of the UK’s leaders in wealth management with £61.9bn of assets under management. Katrina Brown, Head of Responsible Investment, says that a sustainability-minded investment strategy has traditionally taken the exclusionary route based on ethical or value preferences, e.g. avoiding unacceptable themes such as tobacco and controversial weapons. However, more recently she has seen a shift towards investments which are aligned with delivering positive outcomes for people and planet such as UN Sustainable Development Goals, including lower carbon energy generation.
An example is Evelyn’s Horizon Fund Range, a key offering for clients with sustainability related preferences. By investing in a broad range of funds, it seeks to combat a key risk to returns: the potential for reduction in diversification when investors go down the sustainability route. According to Brown, Evelyn Partners’ clients, predominantly individuals, families and charities, all go through a take-on process where their environmental and social preferences are considered alongside their overall investment and financial objectives. Those investing at least £500k are also able to access discretionary portfolio services which can be shaped around personal preferences to align with their values.
One of the challenges she highlights in this space is how investors and wealth managers can engage with ‘brown’ companies that have carbon-intensive operations and face steep challenges on the path to net zero, such as oil and gas companies transitioning to renewables. Brown says investor dialogue with companies that are part of their traditional portfolios offers “an opportunity to influence corporate strategy”. Transition-orientated funds also have their part to play, as highlighted in Brown’s podcast with Kelly Shue, Professor of Finance, Yale School of Management.
“It’s important for all of us to focus on thinking about and trying to change the behaviour of brown firms because they really do matter much more for the environment,” said Shue.
Diversification and transition
The questions of diversification and investing in companies in transition are priorities for David Cox, Head of Greenbank. Greenbank is the ethical investment arm of Rathbones Group, and has c£2.5bn under management in discretionary wealth portfolios, while undertaking research for another c£2.5bn in related sustainable and ethical funds. Overall Rathbones Group has £104.1bn of assets under management. He says that not holding oil and gas in their Greenbank portfolios was not positive for investors in 2022 following the invasion of Ukraine. However, along with their investors the firm is focused on long-term risks and investment returns of 5-10 years. This long-term approach along with a focus on deep research enables them to create portfolios which manage systemic risks, while most importantly delivering financial returns for their clients.
Cox cites Ørsted, the Danish multinational energy company, as an interesting transition case. Originally a state-owned oil and gas company, in 2005 through acquisitions, it branched out into electricity, and by 2022 had become the world’s largest developer of offshore wind power. Ørsted is now one of the largest renewable energy companies in the world. For a sustainability minded investor or wealth manager, a key question is when to invest in a firm in transition such as Ørsted. Cox says: “You can analyse all the quantitative ESG data, but quality is equally important. As an investor, you need to ask: does the company have a credible and actionable plan for sustainability and the leadership to enable transition?”
Essentially it is Greenbank’s clients, mainly individuals and charities, that will shape the agenda and the makeup of future investment portfolios, observes Cox. He says that this engagement is key, noting the Group’s first responsible investor conference this November. “In 30 years’ time, sustainable investment will just be considered the norm or perhaps won’t even be needed as the world moves onto a different challenge,” adds Cox.
Funding solutions to critical challenges
Another leading UK wealth management company, Quilter Cheviot, launched its sustainable investment strategy in 2010. Today, it offers discretionary portfolios along with two multi-asset funds; Climate Assets and Positive Change. The firm also offers bespoke portfolios for those that request and want it. Quilter Cheviot’s Climate Assets funds, which have £364m assets under management, are available on a range of advised and direct-to-customer platforms, catering for a number of clients looking for sustainable investment.
Claudia Quiroz, Head of Sustainable Investment, says the firm’s approach to sustainable investment focuses on companies that provide solutions to the critical sustainability challenges of our time. Clearly environmental challenges, such as the urgent need to support the transition away from fossil fuels, feature heavily, but it is also about addressing social challenges, such as managing the health implications of structural demographic changes.
Quilter Cheviot identifies sustainable investments across five investment themes: clean energy, food, health and well-being, resource efficiency and water. Quiroz says these are not only critical issues that the world needs to address, but ones that represent long-term structural growth trends, and as such offer attractive growth opportunities.
She says it is “more than possible” to construct a well-diversified portfolio of profitable sustainable companies that should deliver returns over the time horizon the investor has set. Especially as the energy transition continues to gather steam, more established companies are bolstering their sustainable credentials, and as such the investible universe grows. Consequently, this gives investors a choice in how and where to invest.
Understanding investor motivation
Understanding investor choices is critical, says Adam Ratner, Director of Research at Campden Wealth, a global membership organisation of 1400 ultra-high-net-worth (UHNW) family offices. Ratner says his clients feel the burden of family history and leaving a legacy. Without the same oversight or short-term returns needed by institutional investors, he says they have more freedom to invest in specific causes aligned to their needs. “They might not be au fait with ESG or sustainability metrics, but they do have issues they care about,” he says. This is particularly true of the younger generation who tend to be more passionate about social and environmental issues, with the older generation providing the wisdom gained by investment and life experience.
Of course, across 1400 UHNW families, each one is very different, but Ratner stresses sustainability is no longer a fringe interest. “The question investors are asking is no longer whether, but how they should go about it,” he says. With this in mind, Ratner says it is crucial to work with families to understand their investment motivations. He says that high-net worth investors are usually business-savvy and often invest directly in businesses that they understand. Families often ask for fewer but better options. They want curated, high-conviction investments that align with their values.
Transparency matters too, adds Ratner. Clients look for clear reporting on real-world outcomes, not just ESG scores. Flexibility is another priority. Many favour direct or thematic investments and are interested in co-investment or blended finance structures. According to Ratner, the key to having sustainability or green investment opportunities that appeal is to understand who your clients are; what motivates them and what do they care about. Many who have already established their wealth can look to longer horizons that go beyond a single generation – very relevant when you’re considering the future of the planet. This all goes back to a question both he, the families, and many impact investors ask ourselves: what’s the purpose of wealth?
Invitation to Participate
Does your investment fund demonstrate a strong commitment to ESG principles while consistently delivering compelling financial returns? Do you believe your team's strategies and impact merit industry recognition as a Wealth Manager of the Year?
The Sustainable Times RISE Awards provide a significant platform to acknowledge these achievements. Participating offers the opportunity to:
Showcase your fund's commitment: Highlight your innovative ESG strategies and the demonstrable impact of your investments.
Achieve industry recognition: Be acknowledged as a leader within the evolving field of sustainable finance.
Foster strategic connections: The awards ceremony offers a unique networking environment with over 400 investors, founders, and industry professionals. This critically includes sustainable startups who will have entered through our dedicated startup categories. This direct interaction provides fund managers with an opportunity to identify potential future investments and establish relationships with emerging enterprises.
Enhance market visibility: Increase your fund's profile and appeal to a broader audience of ESG-conscious investors seeking both financial returns and positive impact.
Awards Ceremony Information:
Date: 6th November 2025
Time:
6:30 PM, Reception Drinks
7:30 PM onwards: 3-Course Dinner, Awards Presentation, and Afterparty with entertainment
Dress Code: Black Tie
Venue: De Vere Grand Connaught Rooms, 61-65 Great Queen St, London, WC2B 5DA
The De Vere Grand Connaught Rooms, a Grade II-listed venue in the heart of London's West End, provides a distinguished setting for this event, fostering an evening of celebration and networking.
We encourage you to consider this opportunity to highlight your team's achievements and solidify your standing in ESG investment, while connecting with promising UK sustainable startups.
To learn more and submit your application for categories such as 'Wealth Manager of the Year', please visit the Sustainable Times RISE Awards website.
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