Half of retail investors intend to switch some of their investments, including their pensions, into environmental, social and governance (ESG) investments this year, according to new research.
The research by Oxford Risk found that of those 50%, one in seven investors plan to move 60% or more of their investments to ESG in 2022, following increased focus on ethical and sustainable investing.
Oxford Risk, which specialises in behavioural finance and financial wellbeing, found that 41% of investors believed the ESG credentials of advisers and wealth managers were important when rating investment advice. However, 24% thought ESG credentials were not important.
Oxford Risk said that from its research it believed those figures were likely to change over the next two years. It found that 42% of investors believed ESG would become more important to wealth managers to help them win business. Only 4% believed ESG would become less important in that time.
Greg Davies, head of behavioural finance at Oxford Risk, said: “ESG investing is building momentum, with half of retail investors planning to move at least some money into ESG funds over this year.
“It is clearly good news that retail investors are engaging with their investments and making positive decisions and advisers need to engage as well by focusing on delivering the best possible service for investors.”
The survey of 1,022 adults was conducted by independent research company Consumer Intelligence in January this year.
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