ISA season: Most investors want their money used for good
Two thirds of UK adults believe that individual investors have a responsibility to ensure their money is being used for good, new research has found.
A survey from Triodos Bank, which runs an ethical crowd bonds platform alongside other sustainable investments, found that younger investors in particular were concerned about the ethics of where they put their money.
Among those aged 18 to 34, seven in 10 (69 per cent) said they want their money to help fund projects and companies that only work in sustainable sectors, while more than half (56 per cent) said they have become more interested in environmental, social and governance credentials over the past year.
However, 65 per cent of those surveyed say they worry that cost of living increases have had an impact on their ability to use their money for positive change, while more than half (54 per cent) admit that making sustainable choices with their money has taken a back seat to prioritising immediate rising costs.
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“It’s easy to feel powerless in the face of the climate crisis, but the reality is that through our pensions, investments and banking choices we all have extraordinary power to build a better world,” said Richard Curtis, filmmaker, activist and founder of Make My Money Matter.
“And as this new research shows, UK citizens increasingly want to use this power to make sure their money is tackling the climate crisis, not making it worse.
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“Banks and pension funds must respond to this growing movement to make our money matter by transitioning away from investments which are damaging for both people and planet, as well as being unpopular with their customers. Instead it’s time to focus on new investments which build a better future for us all.”
Triodos Bank said its research also revealed misconceptions that you need to be rich to make a positive impact on the planet.
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Six in 10 people (61 per cent) believe that they don’t have enough savings or investments for their impact to make a difference, while more than half (56 per cent) think you have to be rich to be able to make a positive impact with your money.
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“The prevalent myth that you have to be very wealthy to make a difference with your money couldn’t be further from the truth,” said Roger Hattam, director of retail banking at Triodos Bank UK.
“Even a small amount in an ISA with a sustainable provider reroutes money from harmful sectors into positive ones, and sends a powerful message to the wider finance industry that enough is enough. It’s through collective action that putting your money into an ISA with a sustainable bank supports a wider ecosystem of green finance that brings about real change.”
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Triodos Bank is an ethical bank that has made £8.5bn of loans to projects across Europe benefitting people and planet. It backs projects and businesses in which a social impact is embedded in the business model, such as renewable energy or community-based charitable social enterprises. You can invest in a Triodos Innovative Finance ISA from a minimum of £50 with target returns of up to six per cent.