MILLENNIALS are much more likely to care about the ethics of their investments than the older generation, new research has shown.
27 per cent of millennials surveyed said they would take their investment out of a company if it faced allegations of misconduct even if it was achieving high returns, compared to just nine per cent of people aged 55 to 64.
The research, commissioned by ethical investment manager Rathbone Greenbank Investments, also found that 29 per cent of millennials said they ensure that funds are ethical before investing. This is compared to just seven per cent of those aged 55 – 64.
High-net-worth (HNW) millennials are even more driven by their conscience. 41 per cent would take their investment out of an unethical company, even if it were performing well.
1,503 UK adults with savings of at least £1,000 were surveyed by Atomik research in April 2018. The sample was split between those with savings between £1,000 – £100,000 and those with over £100,000 in savings or investable assets.
“There is a growing concern among investors about the need to ensure that investments are socially responsible and these figures suggest that millennials, and especially HNW millennials, are leading the way,” said John David, head of Rathbone Greenbank Investments.
“As millennials come of age and begin to think seriously about investments, it is clear that this generation is taking a different approach towards saving – one that looks at social and environmental impact as well as financial return.
“While this is happening, ethical investing has at the same time become easier than ever, with an increased number of investment options available and better performance.
“These developments will be welcomed by many. Interest in ethical investment has been on the rise for many years but seems to be achieving unprecedented prominence at the moment. It is a trend that is not going to go away – and it affects not just the fund management industry but all of UK business.”
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