A Kana Earth study has found 65% of UK retail investors are more likely to invest in funds that provide more carbon footprint information and transparency in their plans.
According to Asset Servicing Times, the UK retail investors are more likely to invest in funds that provide more information about their carbon footprint and are transparent in their plans to reduce it.
The study – headed by Kana Earth – polled more than 1000 consumers from the UK in November of last year.
Up to 34% of UK retail investors were found to consider the carbon footprint of stock market-related investments before they invest, while a further 26% saying they prioritise carbon footprint over its charges when considering an investment.
Looking towards the future, 46% of those polled predict an increase in allocation to investment funds with a carbon emission-reduction focus, meanwhile 15% expect this increase to be dramatic.
Kana Earth CEO and co-founder Andy Creak said, “Investors are increasingly shining a spotlight on the carbon footprint of investment funds before deciding whether or not to invest in them. 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.”
Elsewhere in the ESG space, the Financial Conduct Authority (FCA) recently revealed it will push back the introduction of its sustainability disclosure requirements for asset managers.
The FCA said that the delay will enable it to consider the significant response to its consultation of the new rules, which secured around 240 written responses.
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