There is a vital need for more education around sustainable investing, says Axa Investment Managers, after research reveals just a third of UK retail investors have heard of ESG.
A survey by AXA IM Select survey found just 32% of investors have heard of ESG and only 33% of responsible investing, while less than a fifth (18%) knew of impact investing.
Slightly more investors have heard of sustainable (46%) or ethical investing (43%).
While age and gender were found to have little bearing on investor awareness, the survey found investors with larger portfolios had higher levels of understanding. Almost two thirds (63%) of high net worth investors had heard of sustainable investing, while 59% had heard of ethical investing and 58% ESG.
Bertrand Penverne, global head of ESG at AXA IM Select, called for greater education to drive forward the sustainable transition and ensure investors can align their portfolios with their values and goals.
“In this day and age it is easy to assume that everyday industry terms like responsible investing and ESG are widely known and understood by most investors but the research shows this is far from the case.
“At a time when there has never been a more pressing need to channel capital to the investments seeking to make a positive difference to the world, it is a huge concern that most investors are not even aware of the types of funds that do this.”
Penverne said it is clear that the investment industry has much more to do to raise awareness and understanding of the various terms more broadly if financial literacy is to be improved and the transition to a low-carbon world achieved.
