Growing interest in sustainable investing among individual investors: Morgan Stanley report
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A new report titled “Sustainable Signals,” published by Morgan Stanley, has highlighted a surge in global individual investor interest in sustainable investing.
The survey, conducted among 2,820 US, European, and Japanese investors, indicates that 77% of respondents are interested in sustainable investments, with 54% planning to increase such investments next year.
“Nearly 80% of individual investors believe that it is possible to balance market-rate financial returns with a focus on sustainability,” said Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer and CEO of the Institute for Sustainable Investing, in a release. “A majority of individual investors also express a desire for their investments to advance positive environmental and social impact, creating opportunities for finance professionals to meet these needs.”
Other key findings
Regional summary: 85% of European investors are interested in sustainable investing. The number was 84% for the US and 56% for Japan.
ESG practices: Over 70% believe strong ESG practices can deliver financial returns. 82% and 77% think companies should address environmental and social issues, respectively. Nearly 80% of investors consider the company’s reporting on environmental issues, like commitments to reduce GHG emissions, necessary. Over 60% are concerned about greenwashing risks and the lack of transparency in ESG data.
Climate action: Water solutions (74%), healthcare (74%), and circular economy (73%) were the top sustainable investing themes.
Guidance: More than half (52%) of the respondents self-reported limited knowledge about how to start investing sustainably, with 47% saying there needs to be more financial products available. The investors are ready to seek financial professionals to guide them in achieving their sustainability goals.
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