Over 70 Percent of Investors Keen on Sustainable Investing: Morgan Stanley Survey

(3BL Media/Justmeans) – Investors have been increasingly showing an inclination to develop portfolios that offer competitive financial returns while also promoting sustainability. Particularly, over the last decade, a new wave of investors representing billions of dollars in capital has emerged that specifically seeks innovative alternative investment vehicles with measurable, direct ESG impacts.

A new survey published by the Morgan Stanley Institute for Sustainable Investing corroborates this trend. According to the survey, seventy-one percent of active individual investors have shown an interest in sustainable investing, and nearly two in three believe sustainable investing is set to rise over the next five years. The new Sustainable Signals report also assesses the broader implications of this trend for investors, companies and governments.

Findings of the survey reveal that nearly three out of four active individual investors believe that companies with effective ESG practices can achieve higher profitability and are better long-term investments. The investors also say that on average 46 percent of their total portfolio should be allocated to sustainable investments.

The survey shows that as many as 84 percent of the Millennials and 76 percent of women are open to the idea of sustainable investing. Millennials are twice as likely to both invest in sustainable companies and divest in the event of objectionable corporate activity. Female investors are nearly twice as likely as male investors to consider the impact of their investment when making an investment decision.

Audrey Choi, Managing Director and CEO of the Institute for Sustainable Investing at Morgan Stanley, said that the organization is working to drive scalable investment solutions that seek to achieve market-rate returns and help address global challenges. As sustainable business practices and investment options become more important to investors, these solutions can help promote the rate of sustainable investing.

Choi said that the Morgan Stanley Institute is trying to advance sustainable investing at scale by demonstrating that it is possible to achieve positive impact and market-rate returns. The Institute believes that it is necessary to mobilize private capital at scale to address global challenges.  

Source: 3BL Media       

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