Global Investor Study Profit vs impact: investors choose sustainability for better returns

By Lora Benson | Oct 20, 2017
A major new study shows people are more likely to back sustainable investing for better returns, as to create a positive social impact.

Sustainable investing has long been regarded as more of a philanthropic pursuit, putting positive impact ahead of making a profit. But a major new study shows investor attitudes may be shifting.

The 2017 Schroders Global Investor Study of 22,100 people who invest across 30 countries found the majority of them view sustainable investing as a way to generate profits and not just potential positive impact.

The chart below shows investors’ average responses when asked about how they invested in six different types of sustainable funds or ways of investing:

• Medical science/biotech.
• Green technology.
• Avoiding oil, gas or coal companies.
• Positive social impact.
• Improving how companies are run.
• Improving diversity.

They were asked whether they invested in them for potential profit versus positive social and/or environmental impact.

Investors were given a scale between one - for positive impact - and five - for profit. A score above 3.0 meant investors lent more towards profit. The responses for all six fund types were close to 3.0, as shown in the chart.

The average across all six was 2.9. This meant investors were equally likely to choose sustainable investing as a path to better potential returns as for the impact it might generate on the world.

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