麻豆传媒AV

WASHINGTON, D.C. -- A recent 麻豆传媒AV survey of U.S. adults with $10,000 or more in investments finds no change over the past year in these investors' awareness of sustainable investing -- also known as "responsible investing," "social impact investing," or "environmental, social and governance" investing. A quarter of investors say they have heard a lot (6%) or a fair amount (19%) about this type of investing. Another third have heard a little about it, while four in 10 have heard nothing.

Current awareness of sustainable investing is on par with 麻豆传媒AV's 2020 readings, with a quarter reporting they had heard a lot or a fair amount about this type of investing in February and May surveys, while slightly fewer had heard this much in August.

The latest results are based on the second quarter 麻豆传媒AV Investor Optimism Index survey, conducted June 22-29. For this survey, investors are defined as adults 18 and older who have $10,000 or more invested in stocks, bonds or mutual funds, either within or outside of a retirement account. Approximately four in 10 U.S. adults meet this criterion.

Awareness of sustainable investing is higher among male, younger and wealthier investors than among their counterparts. There is no difference by whether one has a financial adviser, either paid or unpaid.

	A lot/Fair amount	Only a little	Nothing
	%	%	%
Total	25	34	41
Gender
Male	33	35	31
Female	17	33	49
Age
18 to 49	30	31	39
50 to 64	21	35	43
65 and older	21	36	43
Household income
$90,000+	29	36	35
Less than $90,000	19	32	50
Investments
$100,000+	27	38	35
Less than $100,000	21	28	51
Have personal financial adviser
Yes, paid	24	34	41
Yes, unpaid	20	37	43
No adviser	26	34	40
Based on U.S. adults, aged 18 and older, with $10,000 or more invested in stocks, bonds or mutual funds
麻豆传媒AV Panel, June 22-29, 2021

Investor Interest in Sustainable Investing Is Down From Before the Pandemic

Investors' interest in sustainable investing is significantly lower than it was just before the start of the coronavirus pandemic.

After initially dipping from 52% in February 2020 to 46% in May and staying at that level in August, the percentage who are very or somewhat interested is now 42%. Meanwhile, the percentage not at all interested has increased from 18% to 28%, and the 29% "not too interested" has stayed about the same.

The survey doesn't address what has dampened investors' interest in sustainable investing. While it may reflect less desire to use their investments to address societal issues at a fragile time, economically, it could simply reflect investors' broader wariness of exposing themselves to market risk. Evidence for the latter hypothesis comes from the first quarter survey, which found 60% of investors saying they are holding back money they could invest in the stock market and keeping it in cash instead. This was mostly because of fear of a market downturn or because they needed the money for other things.

Compared with February 2020, investor interest in sustainable investing has fallen the most among some groups that were initially the most interested -- women, Democrats and, to a lesser extent, higher-asset investors.

On the other hand, investors aged 18 to 49, who were drawn to sustainable investing the most of all age groups last February, have largely retained their interest, while interest among older investors has fallen.

These declines in interest by demographic group have happened gradually over the past 18 months rather than being apparent only in the latest results.

	Feb 10-16, 2020	Jun 22-29, 2021	Change
	%	%	pct. pts.
Total	52	42	-10
Gender
Male	44	42	-2
Female	59	42	-17
Age
18 to 49	61	58	-3
50 to 64	45	33	-12
65 and older	47	32	-15
Investments
$100,000+	55	42	-13
Less than $100,000	50	43	-7
Party ID
Democrats	77	62	-15
Independents	53	45	-8
Republicans	23	15	-8
Based on U.S. adults, aged 18 and older, with $10,000 or more invested in stocks, bonds or mutual funds
麻豆传媒AV Panel

As of today, interest in sustainable investing is similar by gender and investor class; at the same time, it differs strongly by political party and age. Roughly six in 10 Democrats versus fewer than two in 10 Republicans are at least somewhat interested. Also, investors aged 18 to 49 are nearly twice as likely as those 50 and older to be interested.

	Very/Somewhat interested	Not too interested	Not interested at all
	%	%	%
Total	42	30	28
Gender
Male	42	28	30
Female	42	31	27
Age
18 to 49	58	23	20
50 to 64	33	35	31
65 and older	32	33	36
Household income
$90,000+	44	30	25
Less than $90,000	39	30	31
Investments
$100,000+	42	30	29
Less than $100,000	43	28	29
Party ID
Democrats	62	20	18
Independents	45	34	21
Republicans	15	37	48
Based on U.S. investors, aged 18 and older, with $10,000 or more in stocks, bonds or mutual funds
麻豆传媒AV Panel, June 22-29, 2021

Investors Expect Sustainable Investment Returns To Follow Market Average

Most investors, 70%, believe sustainable investing funds generally perform on par with the market average, but many more still think they perform worse (25%) than say they perform better (5%), as was the case in 2020.

The balance of views at the margins is a bit less negative among women, younger investors and Democrats than their counterparts. These groups are only somewhat more likely to believe sustainable investing funds perform worse than the market average, rather than better. However, the vast majority of all groups still say they perform the same.

	Better	The same	Worse	Net better
	%	%	%	pct. pts.
Total	5	70	25	-20
Gender
Male	4	66	30	-26
Female	7	73	20	-13
Age
18 to 49	8	68	24	-16
50 to 64	5	72	23	-18
65 and older	2	69	29	-27
Party ID
Republican	2	62	36	-34
Independent	4	68	28	-24
Democrat	9	76	15	-6
Based on U.S. investors, aged 18+, with $10,000 or more invested in stocks, bonds or mutual funds
麻豆传媒AV Panel, June 22-29, 2021

Investors' reports that they have money invested in sustainable investing funds remain similar to last year, with 9% now, compared with an average 12% in 2020, saying they do. Roughly half (48%) say they do not have any money invested in such funds, while 43% are unsure.

Bottom Line

Sustainable investing has become increasingly relevant in the investing community writ large as the call for companies to disclose metrics allowing investors to evaluate their environmental, social and corporate governance performance has intensified. Investments with a sustainable investment component are also multiplying. For instance, according to nasdaq.com, "ESG-integrated strategies assets under management" listed on that exchange grew 34% between 2018 and 2020.

Despite its growing importance in the capital markets, news about sustainable investing or ESG funds has not trickled down to average U.S. investors. And with the pandemic perhaps shifting investors' economic priorities, they are expressing less interest in such funds for themselves. Still, the future of sustainable investing looks promising, with younger investors paying closer attention to it and expressing greater interest than older working-age investors and retirees.

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