Cost of living pushes ESG down investor priority list
Research published by Michelmores indicates that the increased awareness of ESG isn’t having a positive impact on individual investment choices for the majority of people.
The cost of living crisis has lowered the importance of investing in sustainable assets for 23% of millennials, Gen X and baby boomers.
Research published by UK law firm Michelmores indicates that, while sustainability continues to rise up the agenda for corporates and consumers alike, the increased awareness of ESG isn’t having a positive impact on individual investment choices for the majority of people.
For the majority of respondents (89%), sustainable investments have generated the same level of returns as their other investments often (23%) or occasionally (59%) yet half of investors have less than 20% of their portfolio in sustainable investments, while a surprisingly high 36% don’t know the sustainability credentials of their portfolio.
The data also revealed a generational divide, with older generations less likely to consider environmental impact when making investment choices. Richard Cobb, Senior Partner at Michelmores, believes there is a real opportunity for sustainable investing to come of age as younger generations inherit wealth.
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