Independent research commissioned by Clim8 Invest, the digital investment platform that helps consumers invest in companies 100% focused on tackling the climate crisis, has revealed that despite climate change ranking as the number one concern (61%), the vast majority (67%) of those surveyed invest their money in savings accounts or pension funds (32%) that could see them funding oil and gas companies and other industries having an adverse effect on the environment.
The study, which surveyed 2,013 British consumers in September found that 50% didn’t know where their money is invested and 57% would be surprised to learn their savings are being invested in companies that damage the environment.
Subscribe for more stories like this, 8am weekdays - for free!
Yet, the world’s three largest money managers (BlackRock, Vanguard and State Street) have a combined $300bn fossil fuel investment portfolio using money from people’s private savings and pension contributions.
“When you consider that UK consumers’ top two concerns are climate change and saving for their future, it’s clear that by having their savings and pensions with typical fund providers, they are potentially being hit by a double whammy,” said Duncan Grierson, CEO & Founder of Clim8 Invest. “On the one hand, they are unwittingly funding the very thing they are concerned about. On the other, people who stick with typical fund providers will likely get a poorer return as users move away from companies with products and services that damage the environment.”
The survey found that around half of those questioned (48%) believed that sustainable investments can have a meaningful impact on the planet and a quarter (25%) felt that impact investing could have a more significant impact than making lifestyle changes.
Investors are putting off impact investing
Interestingly, many people are currently put off impact investing. When asked about the obstacles to investing sustainably, 59% said a lack of knowledge, and 30% felt the terminology used was confusing.
“The problem appears to be one of perception. The impact investment industry, where Clim8 is now innovating, needs to do better at educating people that there are alternatives that will deliver a great return financially and a more secure future for them and the planet. Our balanced sustainability portfolio has done well despite COVID and the market correction. Over the last 12 months it would have given a return to investors of 9.7%,” said Grierson.
Research from the data provider Morningstar on the long-term performance of Europe-based sustainable funds further supports this trend. It shows the majority have done better than unsustainable funds over one, three, five, and ten years.
Clim8 was founded by Grierson to empower people to make a real, positive impact on the environment while delivering healthy financial gains for their personal futures.
Proactive investment in companies making a positive impact
The company provides a digital investment platform for people looking for a simple way to invest in their future and in the future of the planet. Clim8 doesn’t just screen out fossil fuels from its investment portfolios; it proactively invests into companies whose products or services are having a positive impact on the environment.
The Clim8 team is on a mission to help millions of users invest into a range of companies in clean energy, clean technology, sustainable food, electric mobility, and recycling.
The Clim8 mobile app has already attracted a community of over 10,000 eager investors to its early access waitlist and has started onboarding users to the private beta. The app is expected to launch in the app stores in October.