More and more investors believe sustainable investments lead to higher returns. That’s according to a new report by Block-builders.net.
The research notes that 44% of informed or expert investors agree that sustainable investments lead to higher returns. It says that investors in America and Asia specifically are turning to sustainable investments. While Germany and Europe seem to be lagging behind, there is still a budding trend toward sustainable investments within these areas.
While 44% of financial experts worldwide believe that green investments offer the best returns, in Germany the figure is only 36%. A similar pattern emerges in terms of investors’ actual investment behavior. The report shows 44% of European participants in equity markets are invested in sustainable funds. In Asia the figure is 49%, while in North and South America it is as high as 52%.
The change in sustainable investing popularity is striking when looking at a broad period. As recently as 2007, 37% of financial experts were unwilling to include sustainable ESG investments in their portfolios. Today just 4.1% are opposed to this type of investment.
Private investors are increasingly keen to invest in assets that reflect their own ethical views. A large generational divide is however becoming apparent. Among investors over the age of 71, just 16% would be willing to invest in assets inconsistent with their beliefs. In the 18-37 age group, on the other hand, one in four would be prepared to forego personal convictions to invest in assets offering higher returns.
This comes months after Energy + Environmental Leader reported that more than a quarter of all clients are currently considering or are already actively engaged in responsible and sustainable investing.