ESG sentiment low among UK investors

According to a survey, 28% of UK clients consider ESG important in investment decisions – lagging behind Australian and Japanese counterparts.

IG’s ‘Investor Sentiment Survey‘ showed that the UK’s percentage is low compared to 42% of Australian and 40% of Japanese investors. 

Female clients (23%) are more likely to prioritise ESG when making investment decisions than men (9%). 

The survey highlighted that ethical investment is gaining importance among modern investors. The survey said this approach prioritises moral, religious and social values in the strategy – sometimes even ahead of “profit motives”. 

One out of three UK clients believe that ESG is essential and claim that companies and people have an ethical responsibility to protect the environment and the planet’s future.

The survey also ranked companies on an Ethical Performance Index (EPI) score based on ethics, sustainability and corporate social responsibility.

American multinational company ManpowerGroup ranked first in IG’s ethical performance index (EPI), with an EPI score of 2.6 out of 3, followed by the Irish American company Accenture scoring 2.5.

Also making the top ten are building technologies company Johnson Controls, UK-founded real estate giant JLL, French energy specialist Schneider Electric and US computer and software maker Microsoft. 

Other UK-based and -listed companies featured in the broader list include Linde PLC at number 26 and Northumbrian Water Group at number 87. 

Apple topped the table of LGBTQ+ friendly investing, followed by McKesson Corp.

Similar trends were observed by the Financial Times. Sustainable investments grew by 15% from 2020 to 2022, accounting for 36% of professionally managed assets across the US, Canada, Japan, Australasia and Europe. Google keyword data also showed that searches for “sustainable investing” grew by 83% in the past year. 

© 2023 funds europe

 

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