Investors would prefer their portfolios to tackle social rather than environmental challenges, a study has shown.
Of the 2,000 investors surveyed by Big Society Capital, 57 per cent of under 45-year-olds said their preference was social impact investments rather than environmentally-motivated holdings.
This trend increases among younger investors, with 67 per cent of under-25s selecting social over environmental impact as a priority.
When asked what kind of social impact they would like their investments to have, 39 per cent of those aged 18 to 24 said health and wellbeing.
The research showed that older investors were more concerned with their money going towards environmental protection.
Some 57 per cent of over-55s would invest in environmental protection compared with 42 per cent of 25 to 34-year-olds.
The survey was conducted by Censuswide on behalf of Big Society Capital between January 10 and 14 this year.
Percentage of social or environmental issues selected as a priority for investment by different age groups
| 18-24 years old | 25-34 years old | 35-44 years old | 45-54 years old | 55+ years old |
Environmental protection | 33% | 42% | 49% | 54% | 57% |
Health and wellbeing | 39% | 37% | 34% | 39% | 41% |
Homelessness | 30% | 37% | 33% | 39% | 34% |
Domestic violence | 33% | 33% | 23% | 25% | 19% |
Social inequality | 23% | 25% | 31% | 25% | 24% |
Racial inequality | 28% | 28% | 20% | 10% | 10% |
Income and financial inclusion | 17% | 18% | 17% | 13% | 10% |
Youth unemployment | 16% | 14% | 14% | 17% | 14% |
Childhood obesity | 16% | 12% | 13% | 10% | 7% |
Community resilience | 13% | 8% | 11% | 9% | 10% |
Not sure | 1% | 2% | 3% | 9% | 12% |
Source: Big Society Capital
James Westhead, head of engagement at Big Society Capital, said it may be a surprise to many that younger people, the future generations that will most feel the impact of climate change, have a discernible interested in using their capital to support people in society.
“The interest in social impact investing is really encouraging as it has a huge role to play in supporting charities and social enterprises that provide essential services across the country, as well as contributing to the levelling up of the economy.
“Now is the time to capitalise on the huge social benefits that social impact investing can bring.”
sally.hickey@ft.com
