One in three UK adults (31%) would prioritise ethical or sustainable investments even if it meant lower returns, according to new analysis from Rathbones.
The wealth manager said this view is most common among 30-44 year olds, with 56% of respondents in this age group saying sustainable investing is their priority.
However, support for sustainability falls across older age groups to just 18% amongst those aged over 65.
Women also place more importance on how ethical their investments are than men, with 33% expressing interest versus 29% of men.
More broadly, Rathbones said its research suggested that the wealthier the person, the more likely they are to prefer their investments to be sustainable.
David Harison, head of sustainability for Rathbones Asset Management, said: “This response highlights the appeal ethical and sustainable investment strategies continue to offer for many investors and the importance of values-based options in the market.
“We believe that ethical and sustainable strategies allow consumers to generate strong long-term risk adjusted returns without sacrificing their core values. We continue to see growing demand for sustainable investment strategies globally and expect this trend to remain consistent going forward.”
Harrison said that while sustainability is playing a part in investors’ decisions, there is also growing recognition that you cannot view financial and sustainability factors in isolation.
He added: “Structural issues such as the energy transition and water risk have not diminished. By accessing sustainable investment strategies, consumers are allocating more capital to help provide solutions to these systemic problems. While there may be shorter-term performance trade-offs, we view the long-term opportunities as significant.”
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