GREEN AND ETHICAL MARKET SPREADS ITS WINGS
New research shows high levels of demand for green and ethical financial products, including current accounts and insurance.
New research from YouGov, released as part of National Ethical Investment Week 2011, shows heavy demand for green and ethical financial products despite the tough economic times. It suggests that a more diverse range of green and ethical financial products including current accounts, mortgages and insurance are becoming popular with consumers.
The research, released today, found that 42% of GB adults with investments want to ‘make money and make a difference’, with over one in three (34%) wanting at least 25% of their investments to include green and ethical considerations and a further one in ten (10%) wanting to ‘dip their toe in the water’ by including green and ethical considerations in a smaller proportion of their investments.
The research also looked at which green and ethical products the public are potentially most interested in. 22% of GB adults would be attracted to a green and ethical bank account; 18% to savings and investments; 14% to insurance and 11% to mortgages. A further 6% indicated an interest in green and ethical Junior ISAs, set to be available from November this year.
The research also found:
- 55% of GB adults with investments said they did not clearly understand what their savings and investments support.
- 53% of GB adults with investments believe financial products that take social and environmental issues into account have an important, or very important, part to play in the long-term growth of the UK economy.
- 36% of GB adults with investments wanted to know more about ‘impact investing’, i.e. investment designed to yield both a financial return and social or environmental benefits.
- 58% of all GB adults believe that employer’s pension schemes should match or beat the standard set by the new NEST workplace pension scheme in their approach to managing social and environmental issues before they are allowed to qualify for ‘auto enrolment’ from October 2012.
National Ethical Investment Week (NEIW) 2011 is coordinated by UKSIF, the sustainable investment and finance association.
Penny Shepherd, UKSIF Chief Executive, said:
“The days of green and ethical investment as a niche market are long gone and there are currently around £21.8 billion of assets invested in funds available to the UK investor in thematic, environmental and ethical funds*. As part of this evolution we are now seeing green and ethical investment spread from equity funds to include products from investments to insurance and Junior ISAs to pensions. There is now a wide breadth of green and ethical financial products available, a cross-section of society is investing in them and there are many different ways to make a difference on social or environmental issues without sacrificing financial performance.
“This is the fourth National Ethical Investment Week and one of the most striking features is a willingness from those that have never considered green and ethical investment before to give it a go despite the tough times. One in ten investors in the UK now want to dip their toe in the water by adding green and ethical considerations to a small proportion of their investments, while a third want significantly more than this.
“The research also shows that individuals want to put the ‘eco’ into the economic recovery. Over half of adults with investments believe responsible investment should be a significant factor in the long-term recovery of the UK economy.”
Barry Tootell, chief executive of The Co-operative Banking Group, said:
“The financial crisis has led to increased awareness of how financial services providers use customers' money. Trust, responsibility and ethics are now more important than ever when it comes to choosing a home for your money.
“At the Co-operative Bank, we have a proven track record in taking a long-term and sustainable approach to business that our members - our owners - both expect and demand. During the first half of 2011 we saw a 73% in new current account applications - clear evidence that this approach is a key factor as more people choose to bank with us.”
Contact
Elliot Frankal, ESG Communications
T: 07989 524780 e: elliot@esgcomms.com
Notes to Editors
All figures, unless otherwise stated are from YouGov Plc. Total sample size was 2105 adults. Fieldwork was undertaken between 28-30 September 2011. The survey was carried out online. The figures have been weighted and are representative of all GB adults.
*According to ‘Worldwise Investor’ (www.worldwiseinvestor.com)
About National Ethical Investment Week
National Ethical Investment Week (NEIW), the campaign to raise awareness of green and ethical investment, is coordinated by UKSIF, the sustainable investment and finance association. NEIW 2011 will be held 16-22 October. 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 260 members including financial advisers, asset managers, research providers, pension funds, banks and non-governmental organisations. For more information, visit www.uksif.org.
