Client awareness of ESG investing is on the rise but the appetite for ESG investments could be waning, according to a new survey by a Chartered Financial Planning firm.

The numbers of investors wanting to invest responsibly in 2021 was down 8% from 2020, according to the survey by Financial Planner and wealth manager The Private Office (TPO).
 
TPO questioned 508 adults aged 18-84 with at least £20,000 to save or invest in October or its new annual survey.
 
The survey found that there was increasing awareness of ESG investing this year, up 25% from 2020, and investors were adding increasing exposure to ESG funds – up 43% from 2020

Despite this the appetite to invest responsibly was down nearly a tenth (8%) from 2020.
 


TPO said despite the setback overall there was an encouraging picture of increasing awareness of ESG, with 55% of people surveyed having heard of ESG, an increase of 25% from 2020.
 
Some 71% of people said they were already invested in ESG and see it as an important part of their investment strategy, up from 56% in 2020.
 
More than 4 in 10 (41%) now see ESG as ‘very important’ to their investment strategy, up from 24% in 2020.



However, TPO says for those who have not yet embraced ESG investing, there was decrease in the desire to invest in ESG funds, with 78% of people interested in investing in responsible and sustainable companies and assets, down from 85% in 2020.





Nearly half of potential investors also said they have not heard of the term ESG despite huge marketing budgets and only 56% knew what it stood for.



TPO says its survey also suggests that older investors are less interested in responsible and sustainable investments. For the 55+ age groups, the appetite for ESG investments falls away “sharply,” says TPO. 



Investors interested in responsible and sustainable investments

Source: TPO Annual Survey
 
 
Dean McSloy, partner at The Private Office, said “The growing awareness and passion for ESG, once you get on board with the concept, only goes to cement our feeling that the future of investing really will be ESG.”