The next stage of growth in Environmental, Social and Governance (ESG) is likely to come from alternatives.

This is according to Joachim Klement, head of investment research at Fidante Partners.

He explained how ESG equities have not experienced much growth in investment companies, only around six percent. On the other hand renewables are predicted to grow by 25 percent for the next three years.

Both infrastructure and renewables seem to have the largest predicted growth rate.

Mr Klement said: “Invested companies in alternatives is very democratic as it allows retail investors and private investors access to areas that are normally inaccessible to smaller investors.”

It is the most democratic financial product he can think of as well as alternatives having stable cash flows.

He also sees ESG as the way forward as he said: “I get more request to go to ESG conferences than anything else.”

Mr Klement focuses on research on listed companies and investment themes in alternative asset classes.

Prior to his current role Mr Klement was head of thematic research at Credit Suisse Private Bank and chief investment officer (CIO) at Swiss-based investment consulting firm, Wellershoff & Partners.

Fidante Partners invests in, and forms long-term alliances with, asset managers to create, grow and support specialist boutique asset management businesses.