Investor portfolios are out of sync with their own attitudes to sustainability, research claims.
Analysis by financial software provider Capital Preferences found two thirds of investors rate environment, social and governance (ESG) factors as important or very important when it comes to investing.
But only 25 per cent were confident that their current portfolio is fully aligned with their values.
Read more: FCA seeks views on ESG investment criteria
The research also found that 60 per cent of UK investors did not know how much of their portfolio they wanted to invest in ESG funds and 66 per cent didn’t know how to prioritise this strategy.
For the majority of investors across the UK, US and Singapore, 55 per cent said there was a mismatch between their ESG preferences and their actual portfolio allocation.
Bernard Del Rey, co-founder of Capital Preferences, said better ESG profiling tools are needed to support investors.
“Many investors intend to invest sustainably, but lack the specific knowledge of how to do so,” he said.
“We believe that the financial industry can use technology to transform investor profiling and help investors realise performance-driven ESG investing that is more closely aligned to their personal beliefs and preferences.”