Much of the UK public is not being provided with sufficient support from their employer or financial adviser to make sustainable investments in the market, despite them being uncomfortable with their investments negatively affecting the climate, according to a survey carried out by the UK Sustainable Investment and Finance Association (UKSIF).
Launched to coincide with UKSIF’s Good Money Week, an annual event aimed at promoting sustainability in UK retail finance, 69% of respondents with financial investments who reported having an employer or financial adviser have not been made aware of the environmentally sustainable financial products available to them.
As a result, 58% of people with financial investments do not know whether their investments are environmentally sustainable. That is despite 69% of those surveyed reporting that they would be uncomfortable with their investments being in companies which negatively impact the environment and climate.
“The majority of the public do not want their investments and pensions savings being used to negatively harm the environment and climate,” said UKSIF’s CEO, James Alexander.
“There is clearly a need for employers, financial advisers, and all groups across the investment chain to do more to help their employees and clients take advantage of investments in those products that reflect their values, support the net-zero transition, and deliver good returns.”
The polling also revealed that 70% of people with financial investments are uncomfortable with their savings or pensions being invested in companies which treat their workers, customers and wider society badly.
“We would like to see financial advisers given the support they need to give their clients meaningful advice on how to invest in a sustainable manner,” added Alexander.
“An important step will be clarity from the Financial Conduct Authority (FCA) on the regulatory approach to advisers and other retail-facing intermediaries under the UK’s upcoming SDR and labelling regime.”
The FCA is expected to publish its long-awaited policy statement on Sustainability Disclosure Requirements in the last quarter of 2023 after multiple delays.
