The Better Business Show, in association with Triodos
To Mark Good Money Week, Triodos has carried out a new survey into ethical and social investment. And the good news is that more than 60% of UK investors would like their money to make a positive contribution to society and the environment.
However, according to the survey, many people struggle to find options for socially responsible investments (SRI).
- 62% say they would like their money to support companies which are both profitable and make a positive contribution to society and the environment.
- More than half (58%) think that people should invest their money where it can support companies that make a positive contribution to the planet and society.
- 47% believe that companies trying to make a positive contribution to society and the environment are likely to succeed in the long term.
But here’s the rub. 51% have never been offered the option of investing in SRI funds.
The SRI retail market is now worth over £15 billion in the UK – up from £12.2 billion three years ago; the demand for more responsible and impactful investments is clearly there.
But most investors have not been offered sustainable and ethical investment opportunities, and 46% would not know where to go to find out more about them.
The survey findings also challenge a perception that ethical funds are less profitable than mainstream investments, as survey respondents see investing in sustainable and ethical funds as ‘smart investment’ and nearly half (47%) believe that companies trying to make a positive contribution to society and the environment are more likely to succeed in the long term.
Indeed, over the last three and five years, the FTSE All World (which excludes fossil fuel companies) has outperformed the FTSE All World index. And this year, the MSCI SRI index has outperformed the MSCI World index (YTD).
It's a point we made during Episode #7 of the Better Business Show when we spoke to Ian Monroe at Etho Capital. And it's clearly a trend that shows not sign of slowing down.
The purpose of Good Money Week (which kicked off yesterday and runs until 5 November) is to raise awareness of sustainable, responsible and ethical finance – and to point people in the right direction.
This week, I caught up with Simon Howard – the chief executive of the UK Sustainable Investment and Finance Association (UKSIF), the organisation behind Good Money Week – to find out more.
Enjoy the show.