Ok, so these advisers also report that it’s a minority of their total client base (one in nine) who ask about it, but it’s still pretty significant, and highlights the rising number of investors who want more than just financial growth from their money.
This is borne out in our own research which shows that 60 per cent of us would be interested in investing ethically if we simply knew more about it, and 74 per cent of us would be likely to opt for investments which benefit society and the environment, if we had the money.
Our research also highlights a lack of confidence in the banking sector, with 80 per cent of respondents saying they have less trust and faith in financial institutions since the UK banking crisis. At the same time, however, people are becoming more conscious of the environmental and social impact their financial choices could make, with more than three quarters (76 per cent) concerned about issues such as climate change, human rights, and deforestation. The nation is most certainly becoming increasingly aware of the impact of its choices.
The most important thing here, however, is bridging the gap which often exists between the client who likes the idea of ethical investment, but doesn’t know enough about it, and the IFA, who may assume it’s not of interest to that client. With evidence suggesting that recent misdemeanours in the banking sector, such as the Libor rate-rigging scandal, have led to more people than ever reviewing ethical options, it’s important that consumers are made aware of the options open to them. There’s a lot to be gained from investments that are doing well in addition to doing good.
