New research from Castlefield, one of the UK’s leading specialists in responsible investment, reveals that investors are becoming increasingly savvy about risks and the consequences of damaging the environment.
Following the increase in high profile individuals and pension funds looking to pull their investments out of fossil fuel companies, the survey found that 56% of investors were concerned that they could lose money by investing in these so called ‘stranded assets’, like oil and gas.
The Castlefield survey suggests that investors are beginning to recognise that sustainable funds with long term vision are likely to do well. 51% of investors think that companies which are trying to make a positive contribution to society and the environment are more likely to succeed long-term and their investments are likely to perform better over the long term.
Consumers want their money to ‘do good’ and say they would be cautious about investing in green wash or funds with ethical claims that are not substantiated. 74% of respondents said they would be shocked if companies claiming to be ethical were found to be investing in companies that negatively impact the environment.
Surprisingly, nearly half (45%) of British investors do not know that there are ethical and sustainable options available when it comes to investments. Six out of ten people (60%) would like to be offered an ethical and sustainable option when choosing their investments. But despite this growing interest in doing something positive with their money, 58% do not know where to go to look for advice.
John Ditchfield from Castlefield said: “We understand the desire to invest in the right funds but there is more to it – than just looking at financial performance. You need to know and understand your investment and your investment choices, a specialist ethical adviser can help you to consider your values, look at your risk profile, and recommend funds that suit your particular needs.”
Olivia Bowen, Partner at Castlefield, commented: “Our Survey clearly demonstrates current demand from the public for more thoughtful investing, and by bringing our businesses together under the Castlefield umbrella, we now have the resources and expertise to respond to this.
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