Recent study found that over 80% of millennials were interested in making responsible investments.
However, while they were receptive to the theme, they feel they lack vital information on the topic from providers and only 9% were currently invested in a fund focused on sustainability, according to research by First State Investments.
Some 82% said more education was needed to drive interest in socially responsible investment and 40% thought there was a lack of information about the sustainable performance of funds.
The report said: “While a slight majority of 57% of millennials thought the application of ESG would boost long-term returns, some responses indicated more promotion of how sustainable businesses are more profitable, especially over the longer term, was indeed required.
First State suggested investment managers should disclose ESG outcomes alongside financial performance against an industry-agreed framework, offer ESG-integration examples, provide resources to educate clients, develop ESG expertise across organisations and have part of portfolio managers’ incentives tied to the quality of their ESG integration process.