UK consumers unknowingly funding climate crisis, new research

The majority of UK consumers are still investing in industries that are actively funding the climate crisis, according to new research by Clim8 Invest. 

Independent research commissioned by Clim8, a climate-friendly investment platform, has found that despite climate change ranking as a top concern, the majority of people (67%) still invest their money or pension funds into accounts that could be funding fossil fuel companies.

The study, which involved over 2,000 British consumers found that 50% of people didn’t know where their money is invested.

Clim8 has highlighted that this is a major cause for concern with the world’s top three money managers (BlackRock, Vanguard and State Street) having a combined $300bn fossil fuel investment portfolio using money exclusively from people’s private savings and pension contributions.

The survey found that around half of those questioned (48%) believed that sustainable investments can have a meaningful impact on the planet and a quarter felt that impact investing could have a more significant impact than making lifestyle changes.

However, when asked about the obstacles to investing sustainably, 59% said a lack of knowledge and 30% felt that the terminology used was confusing.

Duncan Grierson, CEO and founder of Clim8 Invest said: ‘When you consider that UK consumers’ top two concerns are climate change and saving for their future, it’s clear that by having their savings and pensions with typical fund providers, they are potentially being hit by a double whammy.

‘On the one hand, they are unwittingly funding the very thing they are concerned about. On the other, people who stick with typical fund providers will likely get a poorer return as users move away from companies with products and services that damage the environment.

‘The problem appears to be one of perception.

‘The impact investment industry, where Clim8 is now innovating, needs to do better at educating people that there are alternatives that will deliver a great return financially and a more secure future for them and the planet.

‘Our balanced sustainability portfolio has done well despite COVID and market correction. Over the last 12 months, it would have given a return to investors of 9.7%.’

Photo Credit – Pixabay

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Pippa Neill

Pippa Neill

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