ESG investments see drop in demand

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According to recent statistics supplied by the Association of Investment Companies (AIC), the popularity of Environmental, Social and Governance (ESG) investing is currently in decline here in the UK.

The report also showed that most private investors in Britain claim they are still considering ESG factors before making an investment (53 per cent). However, this marks a considerable drop from the 65 per cent of private investors in 2021, who stated they factored in ESG when they invested, and the 60 per cent in 2022.

The statistics displayed a decline in the importance of environmental, social and governance-based factors. However, according to research, environmental factors still held the most value for private investors.

Out of the 47 per cent of investors who didn’t consider ESG factors when making investment decisions, the most popular reason provided was that investors were prioritising performance instead of ESG issues.

The second most common reason for an aversion to ESG investments was investors not believing ESG claims. Most of the survey’s respondents also cited a personal fear of greenwashing.

Many companies have been exposed in the last two years for appearing to support environmental issues to enhance their reputation, but have failed to deliver on their supposed stance in any meaningful way.

Consumers looking for ethical assets for their portfolio often consult wealth managers for green investment advice in Chester, Birmingham, and other UK cities. With an understanding of their stance, managers can tailor portfolios based on their client’s personal ethics.

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