High-net-worth-individuals (HNWIs) are more likely to invest in green and social impact funds now than they were six months ago, according to the second Saltus Wealth Index Report.
The Saltus Wealth Index Report surveyed attitudes of over 1,000 people in the UK with investable assets of over £250,000 about how they felt about the UK economy, their own wealth and lifestyles, and 73% of respondents said they invest in ESG – up from 64% six months ago.
Wealthier people are the most likely to invest responsibly
Saltus’ data found that those respondents with the highest net worth were the most likely to invest in ESG – of those with assets of £3 million or more, 84% invest in ESG – up from 71% previously – while those with assets of between £250k and £500k are the least (63%), the same as six months ago.
The research also revealed that the age group with the highest increase in the percentage that invest in ESG is the over 65s. Six months ago, 24% said they invest in ESG funds or stocks, now this figure is 42%.
Perceived impact of ESG grows, but some HNWIs remain skeptical
The research also found that there has been an increase in the perceived impact that investing in ESG has – 74% of respondents’ feel responsible investments make a tangible difference to the environment or society in general, up from less than half (48%) six months ago. Almost one in five (18%) say they think ESG makes a ‘big impact’ – up from 15%.
However, while ‘insufficient returns’ (32%) is the top reason why respondents who do not have any ESG funds are yet to invest, there is also scepticism around the impact and robustness of ESG. ‘I don’t think they make a difference’ (22%), ‘I don’t believe the reporting and analytics is robust’ (22%) and ‘sustainable investing is just hype’ (20%) are also top issues.
Michael Stimpson, Partner at Saltus said: “It is really encouraging to see a marked increase in the number of respondents investing in ESG. In the current energy crisis, green alternatives are high on the agenda, and from an investment point of view more investors choosing ESGs as part of a diversified portfolio can be very impactful.”