Middle-aged investors don’t give a fig or anything else for things that are good for the planet, just about making money, a new survey suggests.
Stockbroker Charles Schwab (NYSE:SCHW) carried out the research, which returned a few mixed messages though one that was clear enough was that two-thirds (66%) of UK retail investors are unconcerned if their investments are sustainable.
Richard Flynn, managing director at the broker's UK arm, said: "Despite being a major focus for asset management firms, our research shows ESG is not always a priority for retail investors.
“Looking at the trends, we found that considerations around environmental and social factors are often down to the social conscience of individual investors rather than their financial judgement.”
Generational differences were also clear with a big gap between the mindsets of old and younger investors.
Just 28% of Boomer (pre-1964) generation investors said ESG was a factor when choosing investments compared to 55% and 56% respectively among younger millennial and Generation Z responders.
On average, only 44% of investors regularly consider environmental, social and governance (ESG) factors when making a new investment, said Flynn.
“Most investors clearly have good intentions; however, many appear to be conflicted between moral and practical investment motivations.
“Investors often want to invest in companies that help to improve the environment, such as renewable energy producers. However, there is a reluctance to sacrifice investment performance or pay higher fees in return.
Action and words also seemed miles apart when it came to ethical and sustainable stocks with 67% and 71% thinking they were a good idea and can generate good returns, but only one in five (19%) investors stating they held any ethical investments.
That was barely above the 13% that admitted they held 'sin stocks' such as alcohol, tobacco, gambling, or weapons makers.
The perception that sustainable investments cost more than others was another deterrent, though crypto, which in most cases would be more expensive, attracted 39% of investors.