The study, which polled over 22,000 investors globally, including over 1,000 in the UK, found that 54% of UK investors had upped their weightings to sustainable investments in the last five years.
This was behind Europe, where 58% of investors increased their sustainable allocation, while globally 68% of investors had upped their weighting in the last five years.
Additionally some 67% of UK investors said sustainable investing is more important to them today compared with five years ago, lagging again behind Europe (75%) and globally (78%).
The survey also found UK investors’ views of sustainable investing are maturing beyond just thinking about ethical issues, with slightly more investors interested in the potential long term returns/profits available from an investment than those who focus solely identifying responsible businesses.
“It is extremely encouraging for us to see that sustainable investing is on the rise,” said Jessica Ground, global head of stewardship at Schroders.
“The challenges posed by climate change, inequality and demographics are sizeable. Capital markets have a vital role to play in finding and funding solutions to these problems, and it is encouraging that investors see sustainability as an increasingly important consideration.
“How companies make money is as important as how much money they make. In an age of rapid social and environment change, it is vital to understand companies’ abilities to adapt and thrive as those forces reshape industries, competition and growth.
“While profitability remains the central investment consideration, interest in sustainability is on the rise. But investors also see sustainability and profits as intertwined. They are looking to allocate to companies that are successfully navigating social and environmental change.”
