Morgan Stanley Survey Finds Sustainable Investing Poised for Growth
February 27 2015 - 9:00AM
Business Wire
Over seventy percent of active individual investors (71%)
describe themselves as interested in sustainable investing, and
nearly two in three (65%) believe sustainable investing will become
more prevalent over the next five years, according to a new survey
published today by the Morgan Stanley Institute for Sustainable
Investing. The new Sustainable Signals report examines the
attitudes and perceptions of individual investors towards
sustainable investing and considers the broader implications for
investors, corporations and governments.
“The trajectory for sustainable investing continues to point
upward. What used to be a bifurcated decision – one between
investing to make money and giving to do good – is increasingly
becoming a blended conversation as investors look to harness the
power of the capital markets as a force for positive impact,” said
Audrey Choi, Managing Director and CEO of the Institute for
Sustainable Investing at Morgan Stanley. “As sustainable business
practices and investment options become more important to
investors, the Morgan Stanley Institute for Sustainable Investing
is working to drive scalable investment solutions that seek to
achieve market-rate returns and help address global
challenges.”
Millennials and Women Leading the Way
The survey finds Millennials and women at the front edge of
sustainable investing and sustainability. Millennial investors, in
particular, index the highest of any demographic on these topics.
Related findings from the survey include:
- Millennials are the most open to the
idea of sustainable investing (84%) as compared to Gen X (79%) and
Baby Boomers (66%).
- Millennials are twice as likely to both
invest in companies or funds that target specific
social/environmental outcomes and divest because of objectionable
corporate activity.
- Women are also leading the way, with
76% of surveyed investors showing interest in sustainable
investing, compared to 62% of men.
- Female investors are nearly twice as
likely as male investors to consider rate of return as well as the
impact of their investment when making an investment decision (40%
vs. 23%).
Charting a Path Towards Wider Adoption
Results from the survey point to how individual investors
already factor sustainability into their investment decisions and
show that there is still room to grow. Related findings
include:
- Nearly three out of four active
individual investors (72%) believe that companies with good
Environmental, Social and Governance (ESG) practices can achieve
higher profitability and are better long-term investments.
- Individual investors say that on
average 46% of their total portfolio should be invested
sustainably.
- At the same time, investors are divided
over the perception of sustainability and financial gains as being
a trade-off (54% yes vs. 46% no).
“The survey shows that the perception of trade-off between
profitable and sustainable investments is still a major barrier to
the growth of the field – we and others trying to advance
sustainable investing at scale have a job to do, demonstrating that
it is possible to achieve positive impact and market-rate returns,”
said Choi. “Why does this matter? We believe that it is necessary
to mobilize private capital at scale to address global
challenges.”
For more information, please see Sustainable Signals: The
Individual Investor Perspective.
The Morgan Stanley Institute for Sustainable Investing builds
scalable finance solutions that seek to deliver competitive
financial returns while driving positive environmental and social
impact. We create innovative financial products, thoughtful
insights and capacity building programs that help maximize capital
to create a more sustainable future. For more information about the
Morgan Stanley Institute for Sustainable Investing, visit
www.morganstanley.com/sustainableinvesting.
Morgan Stanley (NYSE:MS) is a leading global financial services
firm providing investment banking, securities, investment
management and wealth management services. With offices in more
than 43 countries, the Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals.
For further information about Morgan Stanley, please visit
www.morganstanley.com.
Morgan StanleyMedia Relations:Matt Burkhard, 212-761-2444
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