COPENHAGEN CALLING: INVESTORS WANT TO MAKE MONEY AND MAKE A DIFFERENCE
With climate change set to dominate the agenda in the run up to the Copenhagen Summit in December; increasing numbers of people want to make a positive impact with their investments. New research conducted by YouGov on behalf of National Ethical Investment Week has found that half (49%) of investors would like to make money and make a difference. However, at present, only 8% of investors currently hold a green and ethical investment or savings product.
To help advisers meet the growing demand for green and ethical investments, National Ethical Investment Week (8 – 14 November) is running a range of events across the UK, and providing a free online training course on its website http://www.neiw.org/ . NEIW is coordinated by UKSIF – the sustainable investment and finance association, and sponsored by Aviva Investors, CCLA Investment Management, The Co-operative Financial Services and Henderson New Star. It is also supported by the Association of Independent Financial Advisers (AIFA).
Penny Shepherd MBE, chief executive of UKSIF, said: “With the Copenhagen Summit just around the corner, increasing numbers of people want to make money and make a difference. Green and ethical investments allow people to do just that. Our research shows that women tend to have a more green and ethical outlook than men. But, perhaps most interestingly, the appetite for green and ethical investments is greatest among the older generation – the generation typically with the most liquid assets.“
The new research also highlighted that there is a demand for financial advice in this area. 12% of GB investors said that they would look at green and ethical investments if their financial adviser raised it with them, while 13% said that the availability of more advisors who understood the area would be an incentive. A further quarter (27%) believes that the Government should introduce rules to ensure financial advisers ask investors if they are interested in green and ethical investments.
Half of all investors (50%) also believe that the Government should introduce measures to ensure greater disclosure and transparency in the sector, with just under half (44%) specifying that the financial services industry needs to work much harder to provide clearer evidence of the green and ethical impacts of investments to attract more money.
Penny added: “The fact that people are calling for greater access to financial advice and better information on green and ethical investment is something we should all take on board throughout this week and beyond. Clearly there are advisers that excel in advising on green and ethical investment. However, for many there remains an excellent opportunity to improve their knowledge in this area and include it in their overall client proposition. I hope that NEIW will help them get there.”
According to EIRiS, there is more than £7 billion invested in green and ethical funds in the UK – up from £1.5 billion 10 years ago. And the IMA’s most recent statistics show that quarterly net sales of ethical funds increased three-fold year-on-year to £59m – the highest level since 2007.
Comments from the sponsors of the second National Ethical Investment Week:
Peter Michaelis, Head of SRI, Aviva Investors, said: "NEIW is a chance for the SRI industry to tell people that there is a choice when it comes to savings and investments. People can choose to invest in companies which are providing solutions to the challenges of sustainable development and which are benefiting from strengthening environmental and societal trends. If you want to participate in the growth of well-managed companies offering solutions to climate change or that are involved in education and healthcare then you should look at SRI funds."
CCLA Chief Investment Officer James Bevan said: "CCLA seeks to participate in opportunities like micro-finance and timber that offer a combination of excellent long term financial returns, persistent diversification advantages, and significant social and environmental benefits. Investing can have a greater impact on complex social and environmental problems than philanthropy."
Mike Fox, fund manager at The Co-operative Asset Management, said: “Research confirms that investors are significantly more interested in ethical and sustainable investments once they understand the remits and investment opportunities.
"Many of the areas targeted by these funds are being increasingly cited by the wider investment community as those offering some of the best potential for long-term growth, such as global power shortage and ageing populations. We believe that addressing this need to increase investor understanding - and not just with those of an ethical persuasion - is a good opportunity for intermediaries. "
George Latham, head of SRI funds at Henderson New Star said: “There is clear evidence that investors are starting to include their personal beliefs and values within their choice of financial products. As events such as the Copenhagen Climate Change Conference continue to push sustainability issues up both the political and media agenda, it seems clear that more and more investors will expect their financial adviser to offer choices which fit with their own green and ethical values.”
The survey was carried out online by YouGov plc, among 2092 GB adults aged 18+. Data is weighted to be representative of the GB population. Fieldwork ran from 23 to 26 October, 2009.
Contact
Keith Brookbank/Simon Maule, Linstock Communications, tel: 020 7089 2080
neiw@linstockcommunications.com
Notes to Editors
About National Ethical Investment Week
National Ethical Investment Week (NEIW), the campaign to raise awareness of green and ethical investment options, is coordinated by UKSIF – the sustainable investment and finance association, and sponsored by Aviva Investors, CCLA Investment Management, The Co-operative Financial Services and Henderson New Star. It is supported by the Association of Independent Financial Advisers (AIFA). For more information, visit www.neiw.org.
About UKSIF
UKSIF, the sustainable investment and finance association, promotes responsible investment and other forms of finance that support sustainable economic development, enhance quality of life and safeguard the environment. It also seeks to ensure that individual and institutional investors can reflect their values in their investments. Founded in 1991, it has over 200 members including financial advisers, asset managers, research providers, pension funds, banks and non-governmental organisations. For more info, visit www.uksif.org.
