Two-thirds, or 66%, of UK investors are not concerned about whether their investments are sustainable, according to new research.
The study by Charles Schwab revealed that despite the increasing growth in sustainable investing, it is still not a main priority among many investors.
Of those surveyed, two-thirds (67%) of investors believe ethical stocks are a good option for investment and 71% think companies with good sustainability strategies provide good returns on investment, yet only 19% hold any ethical stocks in their portfolio.
Richard Flynn, UK managing director at Charles Schwab, said: “Despite being a major focus for asset management firms, our research shows ESG is not always a priority for retail investors.
“Looking at the trends, we found that considerations around environmental and social factors are often down to the social conscience of individual investors rather than their financial judgement.”
Research also discovered different demographics have different attitudes towards ESG investments. Younger generations are more likely than older generations to incorporate ESG factors into their portfolios.
Overall, only 44% of investors regularly consider ESG factors when making a new investment. This drops to 28% amongst the Boomer generation.
Whereas 55% of millennial and 56% of Gen Z investors disclosed they regularly consider ESG when making new investments.
Flynn added: “Investors often want to invest in companies that help to improve the environment, such as renewable energy producers. However, there is a reluctance to sacrifice investment performance or pay higher fees in return. This suggests that initially good intentions when investing are not always acted upon.”
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