Today's Investors Care a Lot
About Environmental and Social Issues
Results from our new national poll
How much do people care whether the companies they invest in do right by the environment, our communities, and their workers? What issues are most important to those wanting to make an impact with their investing? And who is most likely to become an impact investor?
Our recent nationwide poll of American investors — conducted in partnership with Kiplinger’s Personal Finance — reveals investors’ knowledge and attitudes about ESG investing. In our survey, ESG investing was defined as being synonymous with sustainable, impact, values, or socially responsible investing.
Growing Momentum for Sustainable Investing
1 in 3 dollars of all assets under management
are invested in sustainable funds.
1
$
$
$
Investors are increasingly motivated to support companies that address their concerns about environmental, social, and governance (ESG) issues. They prefer to invest in mutual funds over other ways of investing. And they would welcome the opportunity to invest in ESG-focused funds through their workplace retirement plans.
These are just some of the findings in our new national poll, which we sponsored in partnership with Kiplinger. Together we surveyed more than 1,000 investors ages 25 and up to learn about their views on sustainable investing, what issues they care most about, and how they prefer to invest.
What's Behind the Growth?
Keep scrolling to reveal the survey responses and discover how yours might compare.
The secret to making an impact is small. When thousands of investors come together with a care that is mutual, the power of small is the greatness of all.”
“
Domini CEO Carole Laible
Discover how Domini uses its position as an investor to work for positive change in our 2020 Impact Report.
Who Wants to Make an Impact?
Interest in ESG is high overall
See Why Inclusive Corporate Leadership Is an Asset.
Better Board Diversity
Domini is taking specific action to improve board diversity among the companies it invests in.
More than 4 out of 10 investors have previously invested based on ESG issues.
Nearly 8 in 10 investors will add sustainable investments to their portfolio in the next two years.
Millennials
Gen Xers
Baby Boomers
M
X
B
Previous ESG investors by generation
M
X
B
65%
20%
Likelihood of adding ESG
investments by generation
M
X
B
91%
80%
68%
42%
What Motivates People to Invest Sustainably?
ESG optimism by generation
M
X
B
75%
58%
47%
Many investors believe that impact-focused investing can make a difference in the way companies manage their businesses.
All three ESG principles seem equally important to investors.
Environmental
practices
Social
issues
Governance
policies
72%
70%
75%
Watch a free webinar on
Making Sustainable Attainable.
Zero Waste
@ Home
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Generational differences
• Millennials and Gen Xers value encouraging clean energy to mitigate climate change and making a positive impact on underserved communities.
• Baby boomers value avoiding
depletion of natural resources.
But when asked to pick a goal they care most about, more than one-third cited the environment. And another one-third selected improving peoples' lives and investing in their community.
Make a positive impact
on the environment
Build a better future for all
Invest in my
local community
Avoid investing in certain industries
Create more
workplace diversity
Advance social justice
35%
24%
15%
12%
8%
6%
How Are People Investing Sustainably?
When it comes to ESG-focused investing, most people say mutual funds are the way to go. And a significant number of employees say they would really like it if their workplace retirement plan included ESG-focused investing options.
Nearly half would choose mutual funds over other types of investments.
Three-fourths say they would invest in an ESG fund through their retirement plan (if their workplace offers one).
Preference for mutual funds
by generation
M
X
B
42%
46%
58%
Desire to invest sustainably through a workplace retirement plan by generation
M
X
B
88%
79%
62%
More than half say offering sustainable options in a retirement plan would have a positive impact on them when evaluating an employment offer.
Impact on employment offers by generation
M
X
B
72%
58%
34%
Download an intro to Domini’s
Impact Investment Standards.
Measurable Standards Make an Impact
Applying a single set of standards across all investment products helps lead to positive change.
What's In Store for ESG?
As more investors discover impact investing, they are learning that sustainable investments can be a part of a balanced portfolio that reflects their values.
A number of research studies from Morningstar² and others show that funds with strong ESG criteria don’t necessarily sacrifice returns to achieve their goals.
For example, a recent study conducted by the Morgan Stanley Institute for Sustainable Investing looked at the returns of 10,723 funds from 2004 to 2018. Its findings: Sustainable funds earned returns similar to comparable traditional funds, but with reduced downside risk, especially during times of high
market volatility.³
Interestingly, investors would prefer to make their sustainable investment directly, rather than with the help of an adviser.
As for the future, well, many investors think impact investing will only become more important to them over time. Domini is here
to help them make a difference.
¹ US Trends Report, The Forum for Sustainable and Responsible Investment, November 2020.
² Moving Beyond Exclusion: Sustainable Investing and Performance, Morningstar, 2016.
³ Sustainable Reality, Morgan Stanley Institute for Sustainable Investing, 2019.
Request a free information kit today.
Building a Better Future,
One Investor at a Time.
If you’re looking for ways to use your money to create positive change, Domini manages five mutual funds that integrate ecological sustainability and universal human dignity. Its in-depth, in-house research continuously evaluates each company’s environmental and social performance and brings thousands of investors together seeking prosperity for people, planet, and profit.
Number of investors who say ...
4 in 10
Interest in impact investing
will continue to grow
ESG will push more corporations
to adopt ESG principles
6 in 10
ESG-focused investing is a fad that will fade in time
Only 11%
Millennials
Baby Boomers
Gen Xers
M
X
B
HOME
Millennials
Baby Boomers
Gen Xers
M
X
B
Request a free information kit today.
Request a free information kit today.