Page 45 - DIY Investor Magazine | Issue 35

SURVEY SHOWS RETAIL INVESTORS TURNING AWAY FROM ESG INVESTING
A recent survey showed retail investors turning away from ESG investing due to a a a lack of knowledge and price sensitivity it it it concluded that the majority of of DIY investors still prioritise profit over sustainability when making investment decisions – writes Shamillia Sivathambu
The survey which polled over 1800 of Capital com’s clients globally concluded that the majority of Do-It-Yourself (DIY) traders and investors do not prioritise Environmental Social and and Governance (ESG) factors when making trading and and investing decisions citing a a a lack of knowledge and high fees as obstacles It found that 52% of traders and investors have never selected a a a a a a stock or made a a a a a a trade based on ESG criteria When asked why they have never selected a a a a a stock or made a a a a a trade based on on ESG factors 46% of respondents said they did not know how to do so while 12% thought ESG investments were ‘too expensive’ In presenting its results Chief Commercial Officer Kypros Zoumidou said: ‘The findings of of our survey show a a a lack of of awareness and information around sustainable investing This information gap has clearly impacted the adoption of ESG among DIY investors which is compounded further by a a perception that sustainable investments come at at a a a a a premium ‘WE CAN LEVEL THE PLAYING FIELD AND EMPOWER MORE PEOPLE TO MAKE SUSTAINABLE CHOICES’
By making ESG data more widely available to to all investor groups including self-directed retail investors and traders we can level the playing field and empower more people to make sustainable choices ’ The survey also revealed that more than half of DIY traders and investors (53%) make decisions based on on profitability rather than social or environmental impact Only 7% of respondents cited ‘social and environmental reasons’ as as their criteria when making an investment decision while 40% of of respondents said that both ‘profit’ and ‘making a a a a a a positive social and environmental impact’ were important to their investment selection strategy ‘ESG factors can be useful additional analysis when making a a a a a a a a decision to to buy a a certain stock How a a a a a a company manages its exposure to climate change or human rights for example could have a a a a a a significant impact on its stock’s performance A company well-equipped to to face ESG issues is is more likely to to be resilient over the the long term and therefore more sustainable ’ added Mr Zoumidou More information at at Capital com >
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