85% of Young Investors Think Their Investment Can Shape Climate Change
Millennials are standing up against climate change. According to recent data presented on BanklessTimes.com, Millennials think they have a personal stake in the planet's future. As a result, they are increasingly expecting their investments to represent their values. The report found that 85% of millennials say how they spend their money can impact climate change.
Jonathan Merry, CEO of BanklessTimes, has commented on the findings. He claims that millennials are more likely than older generations to consider environmental, social, and governance (ESG) factors while investing. ESG factors include carbon footprint, employee diversity, and charitable contributions. This type of funding is growing more popular as investors want to ensure that their money is doing good around the globe.
"Millennials are very aware of the world they are inheriting and the urgent problems they will have to deal with. Thus, they're looking for ways to align investments with their values and make an impact. What we're seeing is a realignment of priorities for this generation. They want to ensure their money is working for them today and for the world, they'll inherit tomorrow," he said.
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There are several reasons why Millennials are so interested in ESG investing. For one, they have a lot of money at stake. They are now the majority of American workers, and they expect to get $68 trillion from their parents, the Baby Boomers, in the next ten years.
Also, they are the most environmentally aware generation yet because they are used to making decisions that are good for the environment. Many people refer to them as "the green generation," because they are more likely to recycle, drive hybrid vehicles, and use reusable bags. They're also more likely to care about climate change than older generations.
Moreover, Millennials are accustomed to working for organisations with social purposes. They want to work for companies that share their values and want to have a positive influence on the world. They can invest in companies that have positive social and environmental impacts due to sustainable investing.
ESG investments, while acclaimed for their numerous benefits, are not without obstacles. Determining whether organisations have solid ESG policies can be challenging. Many businesses say they are suitable for the environment or care about people, but these claims can be hard to check. Furthermore, there is no universal definition of what constitutes a solid ESG practice, so various investors may have differing perspectives on what is significant.
Despite these obstacles, ESG investing is becoming increasingly popular. The rise is due to the number of people who think businesses should think about how their actions affect the environment and society. They think that investing in companies with good ESG policies is a good way to get people to act in this way.