Investing in responsible companies is more important than making as much money as possible for a big chunk of young people, according to new research by Hargreaves Lansdown PLC (LSE:HL.).
In a survey of 2,000 people, it emerged that 44% of investors aged 18-34 placed great attention on their ESG, compared to 27% of over-55s.
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The 21% of respondents who didn’t pick responsible investments at all said it was too much effort to research and switch investments, as there isn’t clear guidance on how to measure the ethics of different stocks.
Some were worried about the returns offered by green investments, with 27% of investors saying they wouldn’t make as much money, while 21% said it just wasn’t a priority to prioritise ESG.
“The collective efforts of COP26 are likely to be disappointing for many climate activists, but the pressure from investors for fresh action to lower emissions and act more responsibly will continue to be ramped up over the months and years to come,” said Susannah Streeter, senior investment and markets analyst at the broker.
“Investors are showing they will use their money when it comes to supporting companies with good sustainability credentials, even without fresh direction from governments.”
“Although baby boomers have more financial clout right now, Generation Z will increasingly flex their money muscles over the decades to come and companies judged to be responsible towards the planet, employees and society at large, will attract their investment.”