The latest research by the London Stock Exchange (LSEG) reveals that 66% of investment providers believe sustainable investment will experience significant growth in the coming years. The study, which explores the wealth industry, provides real-world insights that will shape key wealth trends in 2024 and beyond, while also identifying gaps in knowledge around sustainable investment.
The research comprises two global surveys: one of 2,000 investors across various countries and another of senior executives at 250 investment providers. It highlights that many respondents see the need for more knowledge and information on sustainable investment from investment providers over the next three years. Notably, over a third of respondents who do not use an advisor do not consider sustainability in their investment strategies.
Among those with more than 25 years of investment experience, 65% agree that ESG criteria will become as important as financial criteria in investment decisions over the next three years. However, the primary barrier to sustainable investing is a lack of knowledge about SI, cited by 52% of those without an advisor and 36% of those with one.
Two-thirds (66%) of investment providers agree or somewhat agree that sustainable investment will grow significantly in the years to come. Additionally, more than a third (37%) of respondents without an advisor do not incorporate sustainability into their investment strategy, compared to 24% of those who use an advisor.
Experience also plays a role in ESG investment holdings. Among respondents with over 25 years of experience, 15% currently hold an ESG investment. This percentage decreases with fewer years of experience: 13% for those with 11-25 years, 10% for those with 6-10 years, and just 8% for those with up to 5 years. Similarly, the intention to invest in ESG over the next three years is higher among more experienced investors.
Overall, 65% of respondents with over 25 years of experience believe ESG criteria will become as crucial as financial criteria in the near future.
