A younger generation of investors are leading the growth in sustainable investing.
According to a new survey of 1,000 investors by Morgan Stanley, three quarters of individual investors and 86% of millennial investors said they were interested in sustainable investing.
While the figures are consistent with figures from 2015, which registered 71% and 84% respectively, the level of interest among millennials jumped from 28% who were “very interested” during that period to 38% this year.
A total of 75% of millennials said their investments can influence climate change while 84% said their investments can help people out of poverty.
The survey also found 59% of millennials believe sustainable investing involves a financial trade-off, yet 61% have taken at least one sustainability-oriented investment action in the last year.
A majority (90%) of millennials said they want sustainable options as part of their plans.
Women of all ages are also said to be showing more interest in sustainable investment compared to men, with 84% vs 67%. However, when it came to action, men were just as likely to have integrated sustainability into their investment decisions.
Around 71% of investors polled agreed good social, environmental and governance practices can potentially lead to higher profitability and possibly better long term investments.
Audrey Choi, Chief Sustainability Officer and Chief Marketing Officer at Morgan Stanley said: “As widespread attention to sustainability continues to increase, consumers and investors alike are now more than ever factoring sustainability issues into their investment decisions.”
In the US, sustainable and impact investment rose 33% between 2014 and 2016 to $8.72 trillion.