IFAS URGED TO GAIN THE GREEN ADVANTAGE
New research shows high levels of demand for more information on green and ethical investment
New research from YouGov, released as part of National Ethical Investment Week 2011, shows enormous opportunities for green and ethical financial advice. The consumer research suggests that IFAs can find new opportunities to engage with clients and add value to their service by meeting the demand to know more about areas such as ‘responsible ownership’ and ‘impact investing’.
The research, released today, found that 42% of GB adults with investments want to ‘make money and make difference’, with 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 found a heavy demand for more information on green and ethical financial products, creating a potentially valuable opportunity for the IFA market in tough times. It found:
- 23% of GB adults with investments said their financial adviser or pension fund told them ‘too little’ about ‘responsible ownership’; rising to 30% amongst 45-54 year olds.
- 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.
- 55% of GB adults with investments said they did not clearly understand what their savings and investments support.
An NEIW 2011 ‘Action Guide for Financial Advisers’ has also been released to provide practical information on how advisers can engage with clients on green and ethical investment options during National Ethical Investment Week and beyond. The guide, sponsored by Ecclesiastical Investment Management, is available here.
National Ethical Investment Week (NEIW) 2011 is coordinated by UKSIF, the sustainable investment and finance association.
Penny Shepherd, UKSIF Chief Executive, said:
“The insight that one in ten of those with savings and investments want to ‘dip their toe in the water’ when it comes to green and ethical investment is good news for the market.
“Many financial advisers already do a great job of explaining green and ethical financial options but the research shows that the industry as a whole can improve. What is remarkable is just how savvy the UK market has become. Over a third of individual investors are demanding more information on areas such as responsible ownership and impact investing – terms that barely existed when the first National Ethical Investment Week was launched only four years ago. Meeting that demand is a challenge but also a great opportunity for the IFA industry. Those that go for green in 2012 can really add value as an adviser.
"This research shows how much the green and ethical investment market has evolved. 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.”
Sue Round, Head of Investments at Ecclesiastical Investment Management added:
“These findings and further research undertaken by Ecclesiastical shows a disparity between consumers – who like the idea of green and ethical investment, but don’t know enough about it – and IFAs, many of whom may be assuming it’s not of interest to their clients. It is important that the IFA community makes consumers aware of the wide variety of options available for investing, including ethical options, so they can make informed financial decisions.”
The research also looked at which green and ethical products are potentially popular with consumers and found that 22% would be attracted to a green and ethical bank account; 18% to savings and investments; 14% to insurance and 11% to mortgages.
Contact
Elliot Frankal, ESG Communications
T: 07989 524780
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.
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. Ecclesiastical Investment Management is the sponsor of the Week’s financial adviser activities 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.
