"While our research shows, there is clear growing demand for ESG investing, a significant proportion of UK investors are not totally clear on what it is or how to go about it"
The report revealed that over a third (35%) of consumers expect their adviser to be an expert when it comes to ESG investing. A further 23% anticipate their adviser will bring this investment opportunity into financial planning discussions. Interestingly, according to the study, less than one in ten (9%) would not want their adviser to bring the subject of ESG investing to the table.
Despite the expectations among investors that advisers will present them with ESG investment options, the findings point to a lack of knowledge and certainty among UK investors when it comes to this type of investing. Almost a quarter (24%) cited a requirement for more information to be able to decide what to do and 14% stated they were unsure how to go about it.
When it comes to any concerns about performance, less than one fifth (19%) think investing sustainably will impact the performance of their investments. In fact, figures published in April show the continued popularity of sustainable funds, with £1.8 billion pouring in. Encouragingly, this trend looks set to continue with the M&G Wealth research showing that 41% of those surveyed say they intend to invest more in ESG in the next 12 months with this number rising to 45% in the next five years.
Cat McInally, ESG investment expert at M&G Wealth, said: “ESG considerations are increasingly a part of our everyday lives and decision-making processes. From changes to our lifestyles through to how we invest our savings, the fact that people are coming to together to make a difference to our lives, communities, and the planet can only be a good thing.
“While the current cost-of-living crisis may have taken some people’s eye off the ball in terms of sustainable issues, one simple and impactful thing they can do is consider sustainable investment options for any savings they have.
“While our research shows, there is clear growing demand for ESG investing, a significant proportion of UK investors are not totally clear on what it is or how to go about it, and this is where it’s vital that advisers are tooled up with all the necessary information they need to help them.”
