The proportion of people globally who are investing sustainably is significantly lagging behind those who are interested and would like to invest, indicating that a gap exists between investors’ intentions and their tangible actions, Schroders Global Investor Study 2019 has found.
The survey of over 25,000 investors across 32 locations around the world has found that 16% invest in sustainability, compared to 32% who are interested and would like to invest this way.
Investors in Japan (26%) were the lowest proportion globally who either already invest or want to invest sustainably, while the highest was in India (73%). Investors in Switzerland position themselves somewhere in between: Nearly every second investor always consider sustainability factors when selecting an investment product (49%).
Investors globally who identify themselves as being expert/advanced were more likely to invest sustainably. Just under a quarter (23%) said they invest sustainably, compared to 11% of self-identified intermediate investors and 8% of beginners.
“Source: Schroders, Global data”
At global level, investing sustainably also ranked mid-table in terms of overall financial priorities. Investors instead cited the need to avoid losing money, meeting total return expectations, generating an expected level of income and reasonable fees as more important factors.
The vast majority of investors in India (87%), China (80%), Thailand (77%) and Indonesia (76%) said they always consider sustainability when investing. This compares with 40% of investors in Canada and Denmark, as well as 41% in The Netherlands, countries that, arguably, have had a focus on sustainability for longer, indicating that it is perhaps implicit to investing.
Almost two-thirds of global investors (60%) stated that changes to regulations encouraging them to invest more in sustainable investments would motivate them to do so, while 60% also said that independent ratings confirming that the fund takes a sustainable approach would also drive them to invest this way.
Andreas Markwalder, CEO Schroder Investment Management (Switzerland) AG, commented: “Schroders has a strong belief in the value that sustainable investment can create in society. Following this creed, Schroders has recently acquired a majority stake in BlueOrchard, a leading impact investor. Both companies strongly believe that we can purposefully affect positive change through sustainable investment.”
Adrian Nösberger, CEO Schroder & Co Bank AG, added: “Investors will be left vulnerable to the global impacts caused by issues such as climate change. It is, thus, important that asset managers factor this into their investment strategy. The broader financial industry along with policymakers must ensure that sustainable investment criteria are clearly defined and transparent. This is a unique opportunity for the Swiss finance centre. ”
Swiss Investors are particularly sensitive
The Schroders Global Investor Study also found that while almost two-thirds of investors worldwide (63%) believe climate change will have at least some impact on their investing but one-third (33%) feel that it will have very little or no impact. In contrast, more than a third of Swiss investors (36%) expect a significant impact on their investments because of climate change. In Europe, less than a quarter (23%) agree with this.
Almost three-quarters of investors globally (71%) believe manmade climate change is a real phenomenon that is impacting the world, including 40% who believe this impact will be ‘significant’. Again, investors in Switzerland are more sensitive to climate issues. Every second investor (50%) thinks that climate change is a real phenomenon with a significant impact on the environment.
At a country level, the highest number of doubters were investors in the US, with 7% saying they believe manmade climate change is not a real phenomenon.
“Source: Schroders, Global data”
Generation X vs millennials
The study also found ‘Generation X’ investors worldwide are more motivated by investing sustainably than other age groups, in contrast to the common consensus that ‘millennials’ are driving sustainable investing efforts.
Instead, 61% of Generation X (38-50 years old) said they always consider sustainability factors when selecting an investment product, compared to 59% of millennials (18-37 years old) and 50% of baby boomers (51-70 years old).
Globally, Generation X were also the most likely to feel that their individual investments could have a direct impact in contributing to a more sustainable world (64%) – again a proportion greater than millennials (60%) and also baby-boomers (57%).
Perhaps, most emphatically, almost two-thirds of Generation X investors (65%) agreed that all investment funds should consider sustainability factors and not just those designed as ‘sustainable investment funds’, ahead of baby-boomers (62%) and millennials (60%).
However, millennials (27%) were the most likely generation to consider the sustainable investment of their money as the first or second most important factor.
Geographically, only 7% of investors in Japan ranked investing sustainably as their first or second priority, compared to 33% of investors in each of Indonesia and Thailand.
*In April 2019, Schroders commissioned Research Plus Ltd to conduct an independent online survey of 25,743 people who invest from 32 locations around the globe. These included Switzerland, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, the UK and the US. 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.
Please visit our webpage with detailed information on the study.
Download the full report
For further information, please contact:
Schroders
Alice West, Senior Corporate Communications Manager
Tel: +41 (0)44 250 12 26 / alice.west@schroders.com
Note to Editors
For trade press only. To view the latest press releases from Schroders visit: http://ir.schroders.com/media
Schroders plc
Schroders is a global investment manager with more than 215 years’ experience of helping our clients meet their goals, fulfil their ambitions, and prepare for the future. Schroders currently manages CHF 551.5 billion and employs over 5,000 people in across six continents.*
Schroders is listed on the London Stock Exchange and is a member of the FTSE 100. It also remains in part a family business, with almost half of voting shares held by the Schroder family. Independence and long-term thinking are central to our business philosophy – values reflected in our steady ownership structure.
At home in Switzerland for over half a century – here we have three businesses; each with its own emphasis, all with the same clear focus on meeting clients’ needs and adapting to a changing world:
- Schroder Investment Management (Switzerland) AG is our investment management business. It offers institutional and private investors a wide range of Swiss-domestic and foreign-domiciled funds, along with bespoke investment mandates.
- Schroder & Co Bank AG provides bespoke Wealth Management services to private individuals, family offices, external asset managers and charities.
- Schroder Adveq is a leading private equity asset manager serving institutional investors, namely pension funds, insurance companies and others throughout the world.
Our combined Swiss team is made up of around 400 people. Together they are responsible for a total of CHF 79.2 billion.**
Find out more about Schroders at www.schroders.ch
*as at 30 June 2019
**as at 31 December 2018
Important Information
For professional investors and advisers only. This material is not suitable for retail clients.
This presentation is intended to be for information purposes only and for the sole and the exclusive use of the recipient. The views and opinions contained herein are those of Schroder Investment Management (Switzerland) AG, which may change without notice and which may not necessarily represent views expressed or reflected in other Schroders communications or strategies. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument and should therefore not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Information herein is believed to be reliable but Schroder Investment Management (Switzerland) AG does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purpose without the data provider's consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third party data.
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal.
This document may not be reproduced, copied, distributed or otherwise transmitted either in whole or in part to any third party without the explicit written consent of Schroder Investment Management (Switzerland) AG.
Issued by Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich which is authorised and regulated by the FINMA.
Information importante: Cette communication est destinée à des fins marketing. Ce document exprime les opinions de ses auteurs sur cette page. Ces opinions ne représentent pas nécessairement celles formulées ou reflétées dans d’autres supports de communication, présentations de stratégies ou de fonds de Schroders. Ce support n’est destiné qu’à des fins d’information et ne constitue nullement une publication à caractère promotionnel. Le support n’est pas destiné à représenter une offre ou une sollicitation d’achat ou de vente de tout instrument financier. Il n’est pas destiné à fournir, et ne doit pas être considéré comme un conseil comptable, juridique ou fiscal, ou des recommandations d’investissement. Il convient de ne pas se fier aux opinions et informations fournies dans le présent document pour réaliser des investissements individuels et/ou prendre des décisions stratégiques. Les performances passées ne constituent pas une indication fiable des résultats futurs. La valeur des investissements peut varier à la hausse comme à la baisse et n’est pas garantie. Tous les investissements comportent des risques, y compris celui de perte du principal. Schroders considère que les informations de la présente communication sont fiables, mais n’en garantit ni l’exhaustivité ni l’exactitude. Certaines informations citées ont été obtenues auprès de sources externes que nous estimons fiables. Nous déclinons toute responsabilité quant aux éventuelles erreurs commises par ou informations factuelles obtenues auprès de tierces parties, sachant que ces données peuvent changer en fonction des conditions de marché. Cela n’exclut en aucune manière la responsabilité de Schroders à l’égard de ses clients en vertu d’un quelconque système réglementaire. Les régions/secteurs sont présentés à titre d’illustration uniquement et ne doivent pas être considérés comme une recommandation d’achat ou de vente. Les opinions exprimées dans le présent support contiennent des énoncés prospectifs. Nous estimons que ces énoncés reposent sur nos anticipations et convictions dans des hypothèses raisonnables dans les limites de nos connaissances actuelles. Toutefois, aucune garantie ne peut être apportée quant à la réalisation future de ces anticipations et opinions. Les avis et opinions sont susceptibles de changer. Ce contenu est publié au Royaume-Uni par Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Société immatriculée en Angleterre sous le numéro 1893220. Agréé et réglementé par la Financial Conduct Authority.