Your estate plan establishes what you want to happen to your assets later in life or when you pass away. For many people, an estate plan includes leaving an inheritance for loved ones. With younger generations embracing ESG investing, it might be something you want to consider.

Over the next five years, an estimated €3.5 trillion will pass from one generation to the next in Europe, according to an October 2025 article from ING. Dubbed the “great wealth transfer”, it’s a shift that could help younger generations become more financially secure.

These beneficiaries might have a very different approach to money than their benefactors, including in the way they invest.

72% of Generation Z are very interested in sustainable investing

ESG investing involves integrating your values into your investment decisions by considering environmental, social, and governance factors alongside financial ones. It could provide a way to generate returns while having a positive impact.

Research shows that it’s something younger generations are more likely to embrace.

According to a June 2025 report from Morgan Stanley, 72% of Generation Z say they are very interested in sustainable investing, and 69% of millennials say the same. In contrast, just 23% of baby boomers agree.

As younger generations accumulate and inherit wealth over the coming years, it could lead to a boom in ESG investing.

One of the reasons some people might overlook ESG investing is the misconception that it means accepting lower returns. However, research suggests this isn’t the case.

For example, September 2023 research from Kroll suggests that businesses embracing ESG practices delivered an average annual return of 12.9% between 2013 and 2021. In contrast, firms that were dubbed “ESG laggards” in the study generated average annual returns of 8.6% over the same period.

So, if you’ve been putting off exploring ESG investing because you’re worried about what it could mean for your finances, it might be something you want to consider.

That’s not to say that ESG investment comes without risk, and you’re guaranteed to generate higher returns compared to other investments. It’s still important to assess your risk profile and understand how investments align with your long-term objectives.

2 reasons to talk to your beneficiaries about their views

So, how might this relate to your estate plan? As younger generations are more likely to be interested in ESG investing, you may want to adjust the assets they’ll receive to reflect their views.

There are several reasons why you might want to do this, including these two.

1. It could identify ways to support your beneficiaries’ goals

Speaking to your loved ones about their views is a chance to understand their financial goals and what’s important to them. It could present an excellent opportunity to review your estate plan so it reflects the needs of your beneficiaries.

If the assets reflect your beneficiaries’ wishes, including their ESG values, it could make it easier for them to manage when they receive the inheritance. In turn, this could mean the inheritance better fits into their financial plan and supports their goals right away.

Of course, it’s important to consider your long-term financial security too. You should ensure that the adjustments you make to your assets to suit your beneficiaries are also appropriate for your own financial circumstances and goals.

2. It could make receiving an inheritance easier and reduce stress

Receiving an inheritance can be difficult.

An inheritance has the potential to improve the financial security of the recipient and allow them to achieve goals that they may have believed were out of reach.

However, beneficiaries will also be grieving, which can make it difficult to make financial decisions. They might also worry about using the inheritance in a way their loved one would have wanted, which could lead to them not making changes that would suit their needs or values.

So, adjusting your assets and estate plan to reflect their wishes could reduce stress.

Contact us

If you have questions about ESG investing and how it could fit into your current strategy, please get in touch. We can also create an estate plan that reflects your wishes and supports your beneficiaries.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate estate planning.