What You Need to Know
- As 64% of respondents have a positive overall opinion of sustainable investing, many Americans are interested in taking action.
- Investors are increasingly focused on the role of financial services firms and insurers in sustainable investing.
- But only 52% of respondents said they understood how financial services firms decide to invest their money.
Sustainable investing has solidified its position as a creditable investment option, and will likely hold that position for a long time to come, according to a study released by Allianz Life this week.
The study also found that Americans now expect financial services and insurance companies to implement sustainable investing standards as part of their standard investing process.
The findings were based on an online survey Allianz Life conducted in April with a nationally representative sample of 1,000 adult respondents with an annual household income of at least $50,000.
The 2021 Allianz Life Sustainable Investing Study found that 64% of respondents hold a positive overall opinion of sustainable investing, despite the volatility of recent years.
Many Americans are also interested in taking action. Fifty-two percent of survey participants who are not currently participating said they were interested in allocating funds to sustainable investments.
Respondents who have already chosen sustainable investing appear to be committed, putting 46% of their total investment portfolio toward companies that adhere to sustainability principles.
Not only that, they are not afraid to use their investments as leverage.
Sixty-eight percent of respondents said they believe that reallocating investments away from companies that do not adhere to sustainability principles to those that do is an effective way to punish or reward companies for their actions.
The study findings indicate that investors are increasingly focused on the role financial services companies and insurance carriers play in sustainable investing.
Some two-thirds of respondents agreed that a financial services company can have a significant effect on environmental sustainability efforts, and that, collectively, a commitment in the industry to environmental sustainability could make a positive difference.
They felt the same away about insurance companies.
“Sustainable investing leads to sustainable outcomes,” Allianz Life’s chief investment officer, Todd Hedtke, said in a statement. “Financial services and insurance companies are in a unique position and can play a critical role in the adoption of sustainable investing principles.”