Research has revealed that between now and 2027, 46% of UK retail investors expect to increase their allocation to funds with a strong focus on reducing carbon emissions.
According to research from Kana Earth, one in four of those investors surveyed (26%) place more focus on a fund’s carbon footprint than its charges when it comes to considering to invest.
Meanwhile, some two thirds (65%) of UK retail investors said they are more likely to invest in funds which provided more information on their carbon footprint and are transparent in the manner in which they are reducing it.
The research revealed that, at present, 34% of investors said they consider the carbon footprint of stock market related investments before investing in them, while 15% of this polled said that between now and 2027 expect to “dramatically” increase their allocation to carbon friendly funds.
“Investors are increasingly shining a spotlight on the carbon footprint of investment funds before deciding whether or not to invest in them,” said Andy Creak, chief executive and co-founder of Kana Earth.
“We see this trend gathering substantial pace over the next few years, and a fund manager’s ability to show transparency here and a proactive programme for reducing a fund’s impact on the environment will be seen as equally important as its charges and performance.”
