Two-thirds of UK investors ignorant of ESG performance of their investments
A new study reveals that almost two-thirds of investors don’t know whether the activities of industries or companies they are investing in are ethical or not.
According to the survey by Triodos Bank, 63% of investors don’t know whether the activities of the companies or industries they are investing in are ethical, meaning that many are potentially funding practices which go against their personal views. The findings also show that only a quarter (25%) of people say they know if their investments are ethical.
The survey also shows that the vast majority (85%) of investors would act if they felt their investments conflicted with their personal ethical preferences. As part of the research, Triodos Bank asked respondents to highlight practices which would stop them investing financially in a particular company, fund or pension.
The top five are human trafficking (70%), forced/child labour (67%), pornography (49%), animal testing (45%) and arms/munitions (41%).
The research also showed an appetite for ethical investment, with 71% of investors saying they want more of their pensions and investments in environmental and social sectors. Almost half (46%) of investors would like more of their pension or investment products to be invested in renewable energy while 43% would like to invest in healthcare and 37% in sustainable businesses.
Huw Davies, head of personal banking at Triodos Bank, comments: “A big part of the problem is the lack of transparency in financial products – it should be much easier for the average investor to find out which companies and activities their money is financing so they can make informed decisions."