The Truth Behind Consumer Interest in Sustainable Investments

There has been much discussion amongst Independent Financial Advisors (IFA’s) claiming that less than 10% of their investors are interested in considering ESG (Environmental, Social and Good Corporate Governance) and sustainable investments.  However following a recent independent survey, the outcome painted a very different picture.

The survey was commissioned in July of this year, looking into the current consumer attitudes to these investments and the results indicated that a much higher proportion of investors surveyed, would invest in ESG options.

Responsible for the management of funds worth hundreds of billions of pounds annually, IFA’s play a vital role in influencing the market. We understand that positive shifts influenced by IFA’s can have a significant impact to world challenges. Together with our clients, we should be doing our bit to help the planet for the future of our children.   Statistically, the current ESG investment market reflects a very small 3%.

More people want sustainable investments

The survey was designed around 9 questions and 167 investors were invited to respond. Of these, 72 (43.1%) completed the questionnaire.  The survey results illustrated that 76% of those that responded explicitly wanted their investments to have a positive impact and avoid damaging effects.

Assuming those that did not respond were not interested in ESGs, the survey suggested that 32.9% OF THE INVESTING PUBLIC WANT TO INVEST IN POSITIVE INVESTMENTS.  So why do actual investments only total 3%? Are most IFA’s behind the times?

Why do attitudes about sustainable investments contrast with current figures?

The survey showed that the majority of IFA’s are not only behind the times, but missing a trick.

They are part of the problem, by not providing a route for their clients to fulfil their objectives. These figures suggest that IFA’s are missing out on a large market share, of those keen to take up ESG investments.

The survey asked the investors if there was a perceived greater risk when thinking about ESG investments.  However, the majority stated this was not the case.  Put simply, if their IFA made it easy and straightforward for them, they would invest at least some of their monies in a positive manner.

Change towards sustainable investment solutions

We believe that the results show a degree of certainty, that a change has taken place in the attitudes towards positive solutions and are now part of the everyday market process.  IFA’s need to take on board these changes in public opinion and offer sustainable assets to their client investment programmes.

Contact Mark O’Neill at Jones Harris Chartered Financial Planning on 01253 874255 or email: mark.oneill@jones-harriscfp.co.uk

 

The value of investments and any income from them can fall as well as rise. Investors may get back less than they invest.

 

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