September 4, 2018 / News

Wealthy investors plan to hike sustainability allocations

By Joe McGrath, ESG Clarity

Nearly a third of investors with more than £100,000 in investments are planning to up their exposure to sustainable investments in the coming two years, new statistics show.

Wealthy investors plan to hike sustainability allocations

Nearly a third of investors with more than £100,000 in investments are planning to up their exposure to sustainable investments in the coming two years, new statistics show.

The research was conducted by Sustainable Ventures among 1,213 UK adults in August 2018. The researchers then collated the views of 265 individuals in the research group with more than £100,000 in assets.

They found that investor appetite for opportunities in sustainable companies remains high, with 31% saying that they would prefer to invest in products and services with strong sustainable credentials.

Chris Morris, managing partner and co-founder of Sustainable Ventures, said that investors are increasingly keen to make a difference with their money and are seeking companies that are doing more than simply offering a good corporate social responsibility (CSR) policy.

“Investors are increasingly inclined to put a proportion of their capital into sustainable investments, but the definition of what constitutes a sustainable investment differs substantially from product to product,” he said.

“Investing in tech giants, investment banks or soft drinks companies with strong CSR policies is fine, but many investors want to go beyond that and invest in companies that have sustainability at the core of what they do.”

This latest survey found that 12% of investors said they have increased the proportion of their investments in sustainable investments over the past year, while just 2% have reduce the allocation.

The findings also show that the message on ESG investing is directly reaching consumers, with more than half of those polled (52%) investing in sustainable opportunities without having taken financial advice.

“There is an ever-increasing momentum behind businesses that can provide sustainable solutions, with the level of interest evident in the evolving attitude and behaviour of corporates, investors, politicians and consumers,” Morris added.

“There is, however, a marked difference between the current state of play and previous waves of interest, with recent activity driven not only by ethics but also by return potential and risk management.”