Americans believe sustainable funds can offer higher returns

Americans believe sustainable funds can offer higher returns
The Schroders survey found only 4% of respondents wouldn’t invest because they fear worse performance
SEP 23, 2020

A majority (55%) of Americans are more likely to invest in sustainable funds for their more attractive return profile, according to a study on investor attitudes toward sustainable investing conducting internationally by Schroders.

The survey, of more than 23,000 investors globally, including 2,000 in the U.S., found that only 4% cited they will not invest in sustainable funds due to a perception of inferior returns, down from 27% in 2018.

While climate change is still high on the agenda, social issues, particularly human capital management and the treatment of workers are at the top of American’s concerns regarding corporate behavior. On a scale of 1 to 10, with 10 being extremely important, the two key factors that ranked the highest for Americans were social responsibility at 7.69 and treatment of staff at 7.63.

Communication and education are key to adoption, Schroders said.

“Just two years ago, 57% of Americans cited that they lacked adequate information around sustainable investing,” the company said in a release. “In contrast, today, 53% of American financial advisors are providing information on sustainable investing almost every time they speak to their clients. This is significantly higher than the global average of 33%.”

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