Rathbones: 31% of investors prioritise ethical investments over returns

One in three people (31%) would prioritise ethical or sustainable investments even if it meant lower returns, according to research from Rathbones.

The wealth manager’s researchers quizzed a pool of over 3,000 UK-based adults to compile the report, and found differences between men and women, age groups and wealth levels.

Women placed more importance on making ethical investments than men, with 33% putting it above returns versus 29%.

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In terms of age, there were large differences between generations. Of 30 to 44 year-olds, 56% prioritised ethics and sustainability.

The figures for age 45 to 54 was 47%, for 55 to 64 it was 28%, and only 18% of 65 to 80 year-olds gave that response.

The Rathbones research also indicated the wealthier a person already is, the more likely they are show a preference for investments to be sustainable.

Of those with £25,000 to £250,000 in assets, 31% stated this preference, while this rose to 34% for £500,000 to £1m, and 42% for people with over £2.5m in assets. 

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David Harrison, head of sustainability for Rathbones Asset Management, said: “This response highlights the appeal ethical and sustainable investment strategies continue to offer for many investors and the importance of values-based options in the market.

“We believe that ethical and sustainable strategies allow consumers to generate strong long-term risk adjusted returns without sacrificing their core values.  

“We continue to see growing demand for sustainable investment strategies globally and expect this trend to remain consistent going forward.”

“While sustainability is playing a part in investors’ decisions, there is growing recognition that you cannot view financial and sustainability factors in isolation.