Sustainable, responsible and impact investing rose 33% between 2014 and 2016 to $8.72trn. And much of this is being driven by the new generation of investors, the Millennials, according to financial services firm Morgan Stanley.
The Group’s 2017 ‘Sustainable Signals’ report revealed that overall awareness and interest in sustainable investing has climbed steadily since 2015, as has the percentage of individual investors who have integrated sustainability into their investment decisions. The latest report shows that the younger generation are twice as likely to invest in companies targeting social or environmental goals.
The survey has been tracking 1,000 active individual investors on how they perceive sustainable investing and whether they are acting on that interest.
It found that 86% of millennial investors are interested in sustainable investing.This group is twice as likely as the overall investor population to invest in companies targeting social or environmental goals. 75% say their investments can influence climate change.
Over the last two years, interest in sustainable investing has grown and sustainable investing is entering the mainstream.
The study suggests that millennials are helping to drive a newfound focus on corporate sustainability.
Indeed, pressure has already begun to mount on firms to treat climate change risks as a serious issue, with experts recently suggesting that global warming puts as much as $43trn of global manageable assets at risk between now and the end of the century. And investors already fear that the next financial crisis will be climate-related.
Morgan Stanley’s chief sustainability officer and chief marketing officer Audrey Choi believes that, as widespread attention to sustainability continues to increase, consumers and investors are more likely to factor sustainability issues into their investment decisions.