FROM GREED IS GOOD TO GREEN IS GOOD: DECADE OF FINANCIAL RESPONSIBILITY AN OPPORTUNITY FOR ADVISERS

New research, released as part of National Ethical Investment Week (NEIW), highlights the massive opportunity for green and ethical financial advice. The research from YouGov reveals there is a growing appetite for green and ethical options across the board, especially among those aged 35 and over. More than half (54%) of all GB adults with investments want to make money and make a difference, doing their bit to ensure sustainable economic growth. There is now a renewed public interest in the impact of investments. BP’s recent crisis in the Gulf of Mexico has shown graphically how financial performance and social and environmental factors can be closely linked.

Despite this growing trend, the financial services industry needs to work harder to make people aware of their green and ethical financial options. More than four in 10 (43%) of all GB adults remain unaware that they have green and ethical options on a wide range of financial products from cash ISAs and funds, right through to mortgages and pensions.

NEIW (7-13 November) is coordinated by UKSIF – the sustainable investment and finance association, and sponsored by The Co-operative Financial Services and Ecclesiastical Investment Management. Advisers are urged to use the Week to engage with their clients on this important issue.

Sue Round, Head of Investments, Ecclesiastical Investment Management, said:
“Our fund performance and inflows this year, particularly in the case of the Amity International Fund, has supported the overall ethical case that Ecclesiastical has been advancing since 1988. Our own research has shown that 68% of IFAs now ask about a client’s ethical interest during a client fact find, which shows a great appreciation of what these products can offer financially as well as to address social and environmental concerns. We hope and expect that this will continue to grow as advisers see the long-term value that ethical products bring.”

Penny Shepherd MBE, UKSIF Chief Executive, said:

“As the BP crisis has shown, the social and environmental impact of investment is now a mainstream issue. There is now interest from a wide range of investors, not just those perceived as the traditional ethical client. After a decade that almost ended in global financial meltdown, attitudes are changing from greed is good to green is good – less Gekko more Eco. The 2010s are well set to become the decade of financial responsibility, as more people consider how they can make a difference with their money.

“The research shows that although only 8% of savers and investors currently hold green and ethical investments, a further 37% will consider doing so in the future – a huge opportunity for financial advisers. There is now ample evidence that green and ethical options can deliver excellent performance. Investors and savers can also choose from a wide range of products, including ones for cautious risk profiles. And it is not an all or nothing option. Investors can dip their toes in the water even if they don’t want to dive straight in.”

The research reveals that people aged 35 and over are more concerned about creating a sustainable future than younger adults, dispelling the myth that the younger generation tends to be more green and ethical. When spending their money nearly four in 10 (38%) of those aged 55+ and 39% of those aged 35-54 occasionally or regularly take into account green and ethical issues when buying things, compared to just over one in four (26%) of 18 – 24 year olds. The trend continues when it comes to savings and investments, with more than half (58%) of over 55s and (54%) of those aged 35-54 wanting to make money and a positive difference to the world with their investments, compared to one in three (33%) 18-24 year olds.

An ‘Action Guide for Financial Advisers’ is available at www.neiw.org. The guide includes simple ways to participate in NEIW and maximise the business benefits for advisers.

All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2700 adults. Fieldwork was undertaken between 8th - 11th October 2010.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

Contact

Tony Cox/Portia Roelofs, Linstock Communications

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 The Co-operative Financial Services and Ecclesiastical Investment Management. NEIW 2010 will be held 7-13 November 2010. 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.