Most Investors Intend to Move Towards ESG Investments in 2022

A Brief Summary

According to new research, half of the investors are moving their investments into Environmental, Social and Governance (ESG) this year. Oxford Risk, specialises in behavioural finance and financial well-being, conducted the study and found that people are even switching their pensions into sustainable investment.

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The study says one in seven investors intend to switch 60 per cent or more of their investments to ESG in 2022. This trend is due to investors' increased focus on sustainable investing and ethical practices.

Oxford Risk found that around 41 per cent of investors said they believe ESG credentials of advisers and wealth managers were necessary. On the other hand, 24 per cent said it was not so.

Oxford Risk says that the figures obtained would likely change over two years. Around 42 per cent thought ESG would become more significant to wealth managers to facilitate their business. Meanwhile, only 4% said ESG would become less significant by that time.

Greg Davies, head of behavioural finance at Oxford Risk, said: “ESG investing is building momentum, with half of the retail investors planning to move at least some money into ESG funds over this year. It is good news that retail investors are engaging with their investments and making positive decisions and advisers need to engage as well by focusing on delivering the best possible service for investors.”