Despite fears for the future of the planet, new research undertaken by Clim8 Invest is showing the majority of UK consumers are investing in industries that could be fueling the climate crisis.
Key survey findings include:
- 61% said that climate change was their number one concern. Saving for their future came in a close second (60%)
- 57% would be surprised to learn their savings are being invested in companies that damage the environment
- Almost 50% believe sustainable investments can have a positive impact on the environment
Independent research commissioned by Clim8 Invest (Clim8), the only digital investment platform to help consumers invest in companies 100% focused on tackling the climate crisis, has revealed that despite climate change ranking as the No.1 concern (61%), the vast majority (67%) of those surveyed invest their money in savings accounts or pension funds (32%) that could see them funding oil and gas companies and other industries having an adverse effect on the environment.
The study, which surveyed 2,013 British consumers in September found that 50% didn’t know where their money is invested and 57% would be surprised to learn their savings are being invested in companies that damage the environment.
Yet, the world’s three largest money managers (BlackRock, Vanguard and State Street) have a combined $300bn fossil fuel investment portfolio using money from people’s private savings and pension contributions.
Duncan Grierson, CEO & 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, they will likely get a poorer return as users move away from companies with products and services that damage the environment.”
The survey found that around half of those questioned (48%) believed that sustainable investments could have a meaningful impact on the planet and a quarter (25%) felt that impact investing could have a more significant impact than making lifestyle changes.
Interestingly, many people are currently put off impact investing. When asked about the obstacles to investing sustainably, 59% said a lack of knowledge and 30% felt the terminology used was confusing.
Duncan added: “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 the market correction. Over the last 12 months, it would have given a return to investors of 9.7%.”
Research from the data provider Morningstar on the long-term performance of Europe-based sustainable funds further supports this trend. It shows the majority have done better than unsustainable funds over one, three, five, and ten years.
Clim8 was founded by Grierson to empower people to make a real, positive impact on the environment while delivering healthy financial gains for their personal futures.
The company provides an easy to use, beautifully designed, digital investment platform for people looking for a simple way to invest in their future and in the future of the planet. Clim8 doesn’t just screen out fossil fuels from its investment portfolios; it proactively invests in companies whose products or services are having a positive impact on the environment.
The Clim8 team is on a mission to help millions of users invest into a range of companies in clean energy, clean technology, sustainable food, electric mobility, and recycling.
The Clim8 mobile app has already attracted a community of over 10,000 eager investors to its early access waitlist and has started onboarding users to the private beta. The app is expected to launch in the app stores in October.
About Clim8 Invest
Clim8 Invest (Clim8) is the digital investment platform for people looking for a simple way to invest in their future and in the future of the planet.
Clim8 is the only investment platform to exclusively select companies and funds that are focused on tackling the climate crisis and bringing about tangible change.
For more information, visit www.clim8invest.com.
*Research suggests that investing in cleantech and 100% sustainable businesses offer the greatest positive impact each of us can make to protect our planet for generations to come.
The research carried out online by Research Without Barriers – RWB, between 1-2 September 2020. The sample comprised of 2,013 consumers. All research conducted adheres to the UK Market Research Society (MRS) code of conduct (2019).
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