New research from TIME Investments reveals that the majority (92 per cent) of financial advisers and wealth managers have seen an increase in demand from their clients for investments which have a positive impact on society, the environment and provide economic benefits.This is predominantly being driven by investors’ environmental concerns such as:
• The impact of climate change (31 per cent)
• Air and water pollution (17 per cent)
• Waste management (15 per cent)
• Consumer privacy & data security (10 per cent)
• Energy efficiency (6 per cent)
These concerns are reflected in the sustainable asset classes clients are investing in, with the three most popular being healthcare (56 per cent), renewable energy (50 per cent) and housing (40 per cent).
The majority (88 per cent) of advisers predict that sustainable investing will increase dramatically over the next 12 months – just 12 per cent think that it will stay the same. The research reveals that 27 per cent of advisers’ clients already have some form of sustainable investment and, on average, one third (32 per cent) have made an impact investment which provides capital to address social and/or environmental issues in the past 12 months.
The importance of sustainable investing is underlined by the fact that 86 per cent of advisers said that they are now incorporating sustainability questions into the client fact find.
Stephen Daniels, fund manager of TIME:UK Infrastructure Income, which invests in sustainable assets such as renewable energy, says: “Climate change is one of the great issues of our era and it is encouraging that our research shows that investors are voting with their feet and choosing sustainable investments in an effort to leave future generations with a positive legacy.”