Older investors are significantly less likely to consider ESG factors when investing than younger investors, according to research from the Association of Investment Companies (AIC).
The AIC’s latest ESG Attitudes Tracker found only 31% of investors aged over 65 consider ESG factors when investing, compared with 65% of those under 45.
The 34 percentage point gap is the widest recorded since the tracker was launched in 2021 and is a small increase from a gap of 32 percentage points recorded in 2025.
Overall, the proportion of investors who say they consider ESG when investing has fallen to 45%, down from 53% last year and the lowest level recorded by the survey.
The research also found ESG investing is increasingly associated with poor performance among both private investors and intermediaries.
Only 16% of private investors said they think ESG investing would improve investment performance, while 32% said they believe it would actually hinder performance.
Sentiment among intermediaries, including advisers and wealth managers, was even more negative. Just 11% said ESG investing would improve returns, while 60% expected it to worsen them.
However, 63% of private investors said they have at least some allocation to sustainable funds, while 92% of intermediaries said they do recommend sustainable funds to clients.
Nick Britton, research director at the AIC, said: “Since launching this research in 2021 we’ve seen the initial excitement around ESG investing fade. The main factor has been poor performance and depressed expectations for future performance, but there’s also confusion about what ESG stands for and how it’s incorporated into investing.
“What we haven’t seen before is such a big generation gap between investors under 45 and those aged 65 or more. This isn’t because older investors care less about sustainability – it’s often important to them in their everyday life. But most find the notion of ‘ESG investing’ less appealing.
“By contrast, younger investors are often interested in making investments that align with their values and are much more likely to be fans of ESG investing.”
The survey found that two thirds of investors aged under 45 described themselves as “fans” of investments that consider environmental, social and governance factors, compared with 30% of investors aged over 65.
Older investors were also more likely to believe ESG investing is “woke”, with 28% holding this view, compared with 10% of under-45s.
The AIC also found that governance has overtaken environmental factors in importance to private investors. Some 41% said governance issues are important to them when investing, compared with 37% who cited environmental issues and 29% who cited social issues.
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