While nearly two thirds of UK investors prioritise responsible investing, the related terminology is causing confusion, according to a new report.
Only 35% of 2,000 UK investors surveyed by Close Brothers Asset Management said their only priority when investing is to maximise their financial return.
The majority (85%) of investors said they believed investing sustainability will either improve or provide the same returns as traditional investing.
However, only 18% of the investors surveyed knew what the term SRI means and three quarters were not confident in their understanding of impact investing, ethical screening, or greenwashing.
The most understood term was the catch all of responsible investing, with 39% of the investors surveyed confident they knew what it means.
Investors who used a financial adviser were more likely to understand each term, compared to those who do not.
Censuswide on behalf of Close Brothers surveyed 2,000 UK investors with a mean average of £320,000 invested in January 2021.