Closing the sustainable investment gap
Despite the huge interest in sustainable investment, it still accounts for a tiny share of the asset managed by the UK investment industry. Why?
Authors
56%* of people in the UK say they are interested in investing sustainably but less than 1% of UK investment managers’ assets are invested in a sustainable or responsible way.
That’s a big gap. How can we close it?
At this year’s Blue Earth Summit – an event which brings together over 2,000 purpose led businesses – Kate Rogers, Global Head of Sustainability for Schroders Wealth Management, joined Bevis Watts, Chief Executive of Triodos Bank UK, and Dr. Rhian-Mari Thomas, Chief Executive of the Green Finance Institute, on a panel where they discussed how we ‘Finance the green energy transition’.
In the session, Kate highlighted this gap in sustainable investment, and the role of financial institutions to get money where it is needed to drive the transition to a sustainable future.
Within the session, Kate referenced the findings of Schroders global investor survey, which calls out three main barriers which need to be overcome:
1. PERFORMANCE: some investors remain concerned that sustainable investments will generate lower returns.
We don’t think you have to give up long term financial returns. Our sustainable multi-asset portfolios have outperformed traditional approaches over 3 and 5 years, as compared to the ARC Steady Growth PCI Index return.
2. TRUST: there is a lack of transparency and fear of greenwashing.
Our annual impact report gives a look through to every underlying company held and is independently verified by industry experts BlueMark.
3. ADVICE: 69% of people with a financial adviser have not been given a choice to invest sustainably.***
Collective action can help deliver that change. All Cazenove Capital clients are given the choice to invest sustainably. Talk to our experts today about how we can help you fulfil your financial and sustainability goals and encourage your friends to ask the same questions of their financial advisor.
* (Source: UK Govt survey 2019 Investing in a better world (publishing.service.gov.uk))
** (Source: IMA investment management survey 21-22 Investment Management Survey 2021-22 full report.pdf (theia.org))
*** (Source UKSIF, 2023)
This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.
Authors
Topics