14 Aug Millenials fueling $9 trillion sustainable investing market
Millennials are driving the nearly $9 trillion sustainable investing market, according to Morgan Stanley’s Institute for Sustainable Investing. Sustainable investment products have grown at a rate of more than 33% between 2014 and 2016 in the US, according to data from the US SIF Foundation cited in the newly released report by Morgan Stanley. The market for such products, as a result, has grown from $6.57 trillion to $8.72 trillion.
Morgan Stanley’s “Sustainable Signals” report, examines the findings of an impact-investing-focused survey of 1,000 active investors across the age spectrum. It found that millennials have underpinned the growth of the market for impact investing and the adoption of sustainable portfolio options and other products such as green bonds and green ETF’s. Millennials “are twice as likely as the overall pool to invest in companies or funds that target social or environmental outcomes,” the report said. Further, millennials are twice as likely to buy goods from sustainable companies than the total population.
However, despite recent strides in the space, the belief that sustainable investing solutions deliver weaker returns remains prevalent. More than 50% of investors believe sustainable investing “requires a financial trade-off,” according to the report, with more than 59% of millennials subscribing to what Morgan Stanley describes as the main myth hanging over the space.
Read the full Sustainable Signals: “New Data from the Individual Investor” report here.