Snapshot - Global Investor Study

Chart of the week: What would persuade investors to opt for sustainability?

Interest in investing sustainably has surged in recent years, yet some investors are still holding back. The Schroders Global Investor Study highlights some of the reasons why

24/09/2019

David Brett

David Brett

Investment Writer

Interest in sustainable investing has been rising in recent years – yet some people still seem reluctant to commit to investing for good.

On a positive note, the Schroders Global Investor Study (GIS) 2019 found that more than half of investors (57%) will always consider sustainability factors when selecting an investment product - but 17% do not. The remaining 26% were unsure.

The study, which is based on the views of more than 25,000 investors in 32 locations around the world, offers some insight as to why. It gave respondents five options as to what would encourage them to allocate more money to sustainable funds, shown in the chart below.

The responses were fairly evenly spread, but two options came out on top:

  • Changes to regulations to encourage greater investment in sustainable investments
  • Greater use of independent ratings highlighting genuinely sustainable funds

On each, 60% of investors agreed that these factors could persuade them to allocate more money to sustainable funds.

They were followed closely by people having access to easy-to-understand information from their financial adviser (59%) and in-house ratings that identify funds that take a genuinely sustainable approach (57%). By a small margin, the least popular choice was prompting from financial advisers to put more money into sustainable funds (55%).

Jessica Ground, Global Head of Stewardship at Schroders said: “Policymakers are keen to see the financial system become more sustainable, but this research shows that there is not a silver bullet to achieving this.

“The entire investment chain, from asset managers to financial advisers, needs to help better communicate and educate on sustainable investments.

“Most importantly we need to do this while still delivering the financial returns investors are looking for. Increasingly the academic evidence and our own experience is demonstrating that this has the potential to be achievable.”

What would encourage you to invest more sustainably?

What-would-persuade-investors-to-opt-for-sustainability.jpg

Source: Schroders Global Investor Study 2019

- Read more about how sustainability seeks to deliver long-term value in a fast-changing world.

Schroders commissioned Research Plus Ltd to conduct an independent online survey of 25,743 investors in 32 locations throughout the world, with fieldwork held between 4th April – 7th May 2019.
This research defines ‘investors’ as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years; these individuals represent the views of investors in each country included in the survey.

Important information: The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This article is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.