From the blog: Ethical investing has come to the fore in recent years as more people say they want to align their investments with their moral values, but there are still some obstacles on the way there.
The Good Money Week aims to raise awareness of responsible, ethical and sustainable finance. Its website argues that “it doesn’t cost extra to choose good banks, pensions, savings and investments. It is just a matter of choice – like where you buy your coffee or food”.
But it is difficult to make a choice when there is little to choose from.
The Good Money Week, a campaign that runs from October 8-14 this year and is co-ordinated by the UK Sustainable Investment and Finance Association, aims to raise awareness of responsible, ethical and sustainable finance.
It places an emphasis on positively impacting the environment and society without sacrificing wealth.
Advisers must promote ethical products
Its website argues that “it doesn’t cost extra to choose good banks, pensions, savings and investments. It is just a matter of choice – like where you buy your coffee or food”.
But it is difficult to make a choice when there is little to choose from.
Sixty-seven per cent of investors have never been offered ethical or sustainable investment opportunities, according to a study recently published by Triodos Bank UK Impact Investing.
While two-thirds of UK investors would like their money to support companies which are profitable but also make a positive contribution to society and the environment, 54 per cent would not know where to go to find out about ethical investment opportunities, the research shows.
There may be a growing interest in ethical investing, but these figures suggest that many independent financial advisers may need to start shifting their weight to advocate sustainable products, or progress will be limited.
Source: Eurosif
Millennials want to make a difference
A recent poll of 2,100 people conducted by YouGov on behalf of Good Money Week found that 13 per cent of 18 to 34-year-olds with a pension thought it was their responsibility to make sure their money was invested ethically.
The study also found that more than half of investors within this age bracket would like to be offered fossil-free investments as a standard, compared with 34 per cent of those over 55.
Worryingly, despite this desire for social responsibility among millennials, 64 per cent of those surveyed do not even have investments.
It is all very well for people to say they care about socially responsible investing. But if they are not actually saving and investing in the first place, then how can they expect to work towards a positive future for themselves, let alone a positive future for society and the environment?
In response to the Good Money Week research, UKSIF programme manager Charlene Cranny lamented that “the future looks bright for ethical investments if only the 18-34 age group can walk the walk as well as talk the talk”.
She highlighted that holding ethical opinions can only get us so far, urging millennials to start seriously thinking about where their pensions are being invested.
Earlier this year, some separate YouGov research found that 44 per cent of millennials have no pension provision, compared with around a fifth of 35-40s and 20 per cent of over-55s.
While it is important that people are aware of where their money goes, what is more critical is ensuring that they are saving in general.
