ESG factors rank as highly as investment outcomes among so-called millennials, those aged 18-35, according to the findings of the Schroders Global Investor Study 2016.
ESG factors are also making such investors retain their investments for longer; by an average 2.1 years longer than usual investments, the survey suggests – results are based on the views of some 20,000 end investors in 28 countries globally.
In contrast, the survey found that those aged 36 or older held significantly different views on ESG factors. Themes such as poverty and climate change rate as significant factors among Millennials – scoring 7.2/10 – but less so among older investors – 6.4/10.
Millennials are also much more less likely to hold investments in companies linked to weapons manufacturing/dealing or those linked to “repressive regimes”.
One area where both younger and older investors seem to be more agreed on is the issue of governance.
Schroders said the survey findings point to growing recognition of ESG factors and their importance in determining investment choices.
Jessica Ground, global head of Responsible Investing at Schroders, said: “At Schroders we have long viewed ESG factors as contributing to investment outcomes and returns. We have been integrating analysis of them in our active fund management processes for almost 20 years. It is important to continue to educate investors on the value and added return ESG can provide.”
“While many policymakers are concerned about the rise of short -termism in markets, encouragingly, those surveyed said they would stay invested in ESG philosophies longer than they would in other investments. It is important that investors recognise the value of being invested for the long term and this is especially relevant when considering ESG factors.”
To view the full findings of the research, click here: http://www.schroders.com/en/insights/global-investor-study/2016findings/