Will 2022 truly be the year of environmental, social, and governance (ESG) investing? BlackRock Inc. CEO Larry Fink wrote in his annual letter that if companies don't adopt sustainable business practices, they risk being left behind. "The next 1,000 unicorns won't be search engines or social media companies," he said, "they'll be sustainable, scalable innovators – startups that help the world decarbonize and make the energy transition affordable for all consumers." Moreover, the Department of Labor's new rule regarding retirement accounts now allows fiduciaries to consider ESG investment options—undoubtedly a reflection of the increased mainstreaming of such options: Morningstar reports that 72% of U.S. adults have expressed at least a moderate interest in sustainable investing, with millennials and women showing slightly higher levels of interest than the rest. Aite-Novarica's annual look at upcoming wealth management trends agrees this is one to watch. "Compared with older generations of investors, the youngest generation of investors has distinguished itself with its strong desire to be intentional with its money," write William Whitt and Dennis Gallant in the report. "In practice, this has meant that young investors want more control over their investments, and in particular, they want to ensure that their investments align with their views on climate change and political and social issues. By offering retail investors direct index solutions, wealth managers are able to satisfy the demand for custom ESG portfolios and, more specifically, the demand of the younger generation for personalized investing approaches." However, the authors also warn that the ESG data segment is also undergoing many stages of regulatory oversight. "Wealth managers will need to execute specific cultural, organizational, and workflow challenges as they seek to adopt regulatory compliant sustainable investing operating models," they say. Overall, the new report urges a forward-thinking approach to wealth management after two years of "pandemic-driven agendas." "With traditional products increasingly commoditized, financial advisors are yet again being asked to broaden their scope of activities to defend their MVP status with their clients," the report asserts. See our slideshow above for Aite-Novarica's top 10 wealth management trends for 2022, and click here to get the full report.