Most investors plan to boost ESG investments over the next two years


ESG investment, defined in the survey as “relying on a company’s environmental practices, social issues and governance policies before investing”, resonates the most with young investors: 91% of investors in the Gen Y say they are likely to add these investments to their portfolio soon, compared to 80% of Gen X investors and 68% of Baby Boomer investors. ESG investing is also sometimes referred to as sustainable, impact, value or socially responsible investing.

Overall, over 70% of respondents say that a company’s environmental practices, social issue management and governance policies are very or somewhat important to them when choosing investments. And 41% say they have already invested in stocks or bonds to try to solve these problems. Kiplinger and Domini surveyed 1,029 investors aged 25 and over to find out their take on ESG, what matters most to them and how they prefer to invest.

“Investors increasingly want to make a difference,” said Marc Solheim, editor of Kiplinger Personal Finance, “by choosing to invest in companies that can not only increase their profits, but also have a positive impact on their employees, their shareholders, the community and above all the planet.”

Overall, a majority of respondents believe that ESG investing can make a difference in the way companies run their businesses: but 75% of millennials believe it does, followed by 58 % of Gen X investors and almost half (47%) of Baby Boomer investors. And when asked to choose an ESG investment objective that is most important to them, they cited the environment more than other options:

  • 35% want to have a positive impact on the environment
  • 24% want to build a better future for all
  • 15% want to invest in their local community
  • 12% want to avoid investing in industries such as weapons, fossil fuels or for-profit prisons
  • 8% want to create more diversity in the workplace
  • 6% want to advance social justice

“The good news is that companies like Domini can help people align their investments with their values,” said Carole Laible, CEO of Domini Impact Investments LLC. “With our decades of experience, we apply our environmental and social standards on behalf of the thousands of investors who come together in our equity and bond mutual funds to promote ecological sustainability and universal human dignity. “

Encouraging clean energy to mitigate climate change (19%) and avoid depletion of natural resources and protect ecosystems (18%) were the two main environmental outcomes for the ESG investor. Notably, baby boomers were significantly more likely than millennials or Generation X to identify natural resource depletion as the most important.

How people invest
When it comes to ESG investing, most people say mutual funds are the way to go. Almost half of respondents overall (49%) would choose them over other types of investments. An even larger percentage of baby boomers (58%) say this is their preferred strategy.

In addition, three quarters say they want to invest in an ESG fund through their occupational pension plan. And more than half (53%) say having this option would have a positive impact when evaluating a benefit offer. This was the highest for Millennials, 72% of whom would consider this a plus.

While respondents indicated a general enthusiasm for ESG investing, they point to a few factors that could prevent them from investing more in stocks, bonds or ESG funds. This concerns in particular the concern for performance, but also:

  • Not enough information on potential investments
  • Possibility for a company to make a false ESG declaration
  • Uncertainty on how to get started with ESG investing

“We are encouraged that our mission and our exclusive focus over the years has become more and more crucial for investors and businesses,” said Carole Laible. “Our hope is that we can help make ‘investing for good’ the way all investments are made.”

What is clear is that the sustainability, popularity and prevalence of ESG funds are anything but a given. When asked their opinion on the future of ESG investing, only 11% of respondents said they believe ESG investing is a fad that will fade over time. And nearly two-thirds believe ESG investing will continue to gain popularity or push more companies to embrace ESG principles.

Methodology
The Kiplinger-Domini National Opinion Poll on ESG investment was realized August 4 to August 10, 2021, with 1,029 respondents. The survey has a margin of error of +/- 3.52%. Respondents were selected for age (25 years and over), annual income (at least $ 75,000) and non-retirement investments (minimum of $ 10,000). A survey quota was put in place around familiarity with the term “ESG investing” to ensure that around half of respondents were familiar with the term before responding to the survey. Responses to some questions may not total 100 due to rounding or exceed 100 if respondents could select more than one response.

On Kiplinger’s personal finances
For a century, the Kiplinger organization has led the way in personal finance and business forecasting. Founded in 1920 by WM Kiplinger, the company developed one of the country’s first successful newsletters in modern times. Kiplinger’s letter, launched in 1923, remains the longest continuously published newsletter in United States. In 1947, Kiplinger created the country’s first personal finance magazine. Today, The Kiplinger Washington Editors, Inc. is a wholly owned subsidiary of Future PLC.

Located in the heart of our nation’s capital, Kiplinger editors remain committed to providing sound, unbiased advice to your family and business in clear, concise language. Become a Kiplinger fan on Facebook Where Kiplinger.com and follow Kiplinger on Twitter and LinkedIn.

About Domini
Domini Impact Investments is a women-led SEC-registered investment advisor who empowers individual and institutional investors to make a difference, one investment at a time. By applying social, environmental and governance standards to all of its investments, Domini harnesses the power of finance to create a better world. By focusing exclusively on impact investing that aims to create positive social and environmental outcomes while pursuing competitive financial returns, Domini ensures that every dollar is channeled in a way that achieves its goals of universal human dignity and ecological sustainability. The company’s focus on continuous innovation and community engagement creates strength in numbers, enabling Domini to fuel the prosperity of tomorrow and make ‘investing for good’ the way any investment. is made.

Learn more about Domini.com.

Read Domini’s Impact report 2020.

CONTACT:
Alissa neil
[email protected]
(917) 328-4889

Contact for Domini:
Claire Dorey
[email protected]

Before investing, consider the investment objectives, risks, fees and expenses of each Fund. Contact us for a flyer containing this and other information. Read it carefully.

The Domini Impact Equity Fund is subject to certain risks, including impact investing, portfolio management, information, the market, recent events and the risks of mid and large capitalization companies. The Domini Impact International Equity Fund is subject to certain risks, including risks related to foreign investments, emerging markets, geographic concentration, countries, currencies, impact investing and portfolio management. The Domini Sustainable Solutions Fund is subject to certain risks, including sustainable investing, portfolio management, information, the market, recent events, mid and large capitalization companies and risks associated with small capitalization companies. The Domini International Opportunities Fund is subject to certain risks, including risks related to foreign investments, geographic focus, country, currency, impact investment portfolio management and risks related to the information. Investing internationally involves special risks, such as currency fluctuations, social and economic instability, different securities regulations and accounting standards, limited public information, possible changes in taxation and periods of illiquidity. These risks may be increased when investing in emerging countries. The Domini Impact Bond Fund is subject to certain risks, including impact investing, portfolio management, style, information, market, recent events, interest rates and credit risks.

The advisor’s assessment of environmental and social factors in its investment selections and the timing of the implementation by the sub-advisor of the adviser’s investment selections will affect the Fund’s exposure to certain issuers, industries, sectors, regions and countries and may affect the relative financial performance of the Fund depending on whether such investments are favorable or unfavorable. The value of your investment may decline if the judgment of the advisor or sub-advisor on the investments of the Fund does not produce the desired results. There is a risk that the information used by the Advisor to assess environmental and social factors may not be readily available or complete, which could have a negative impact on the Advisor’s ability to assess these factors and the performance of the Fund. The market value of the Fund’s investments will fluctuate and you could lose money. DSIL Investment Services LLC, distributor, FINRA member. 10/21

SOURCE The publishers of Kiplinger Washington Inc.

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https://www.kiplinger.com/

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