A more responsible approach

Responsible investing is moving into the mainstream but investors want to see the proof in the pudding.

From niche to norm

With environmental, social and governance (ESG) considerations quickly becoming ubiquitous, it seems that responsible investing is moving away from the niche and into the mainstream. The results of our survey clearly show that ESG issues are a priority for British savers and investors, especially among younger generations. But those looking to invest responsibly want to see not only real proof of the positive impact their cash is having but also enjoy positive financial returns.

Will more responsible companies be better off?

The majority of individuals, at 68%, believe that companies with more robust ESG practices will be in a better financial position in the long term compared to those who are not. Individuals do, however, want to see proof that their money is making a difference. Notably, younger people in particular are more passionate about ESG issues with some 74% of 22-30 year olds and 69% of those aged between 31-39 believing that socially responsible firms will be in a better position down the line.

 

What lies ahead for RI?

Looking at future patterns, today's investors say they are mostly interested in green technology, with some 48% citing it as an area they would invest in. 40% said they would consider investing in artificial intelligence while sustainable consumption and climate change were highlighted by 37% and 31% respectively.