Research shows retail investors look for carbon friendly investment funds

Date: 14 Apr 2023

Silvia Ricciardi

One in four investors place a greater focus on the carbon footprint of a fund than its charges.

Two thirds (65%) of UK retail investors say they would be more likely to invest in funds that provide greater information on their carbon footprint and are transparent on what they are doing to reduce it. This is according to new research from Kana Earth Ltd, which has recently launched a unique UK nature carbon directory listing over 1,700 nature carbon offsetting projects.

Currently, 34%  of UK retail investors say they consider the carbon footprint of stock market related investments before investing in them.  Furthermore, one in four (26%) say that when considering whether or not to invest in a fund, they place more focus on its carbon footprint than its charges.

Between now and 2027, 46% of UK retail investors believe they will increase their allocation to investment funds with a strong focus on reducing their carbon emissions. Some 15% expect to dramatically increase their exposure to these funds.

Kana Earth will soon launch an open ledger and investment platform for the UK’s carbon offsetting market, which addresses many of the major obstacles holding the sector back. It will enable UK developers and landowners with carbon offsetting projects to list, manage and  promote these on the platform, providing unprecedented levels of transparency in terms of overall goals and carbon reduction targets for the schemes, and how these will be achieved. 

This will make it easier for fund managers, pension funds, other institutional investors, wealth managers, and all other organisations looking to reduce their carbon footprint or generate ethical returns through buying and investing in transparent UK offset projects. 

Check one of Citywealth’s latest features: The rise of African UHNW individuals

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