The pandemic has increased public interest in sustainable investing, according to a survey conducted by insurance company Aviva.
Environmental, Social and Governance (ESG) is a term commonly used to describe the three main factors measuring the sustainability and societal impact of a business.
According to a survey of over 500 people, 55% of respondents agree that the pandemic means they are more likely to take ESG factors into consideration when deciding where to invest their money.
The research also revealed that this is new for many investors, 81% said the pandemic has made choosing sustainable investments more important and just 32% said they have been doing this for over a year.
67% said environmental factors are the most important, namely those that related to pollution, climate change, waste and recycling and promoting animal welfare.
Alistair McQueen, head of savings and retirement at Aviva, said: ‘Lockdown may have stopped many things, but what it appears to have kick-started is an interest in using money as a force for good.
‘ESG is growing, fast. Education and information will be key.’
However further research revealed that amongst 1,000 investors even those who consider ESG with their personal investments very rarely change their personal or private pension funds to align with their values.
Alistair McQueen added: ‘For the first time, 2019 saw a majority of people of working age investing in a pension.
‘But our insight suggests that many people have yet to make the connection between their pension and its investment potential.
‘Most people report that they are not choosing to revise their investment options after day one, despite this being a common offering across many pensions. There is a huge potential to engage millions of savers by educating them on the potential of ESG and by informing them on how they can manage their investments throughout the life of their pension.’
Photo Credit – Pixabay