Rathbone Investment Management surveyed 1,503 UK adults on ethical investing.

New research found that millennials (22-37 years old) are more likely to make ethical investments than their parents’ generation. More than a quarter (27 per cent) say that they would take their investment out of a company facing allegations of misconduct or unethical behaviour, compared with 9 per cent of those aged between 55-64.

These findings are from a study by Rathbone Investment Management, who surveyed 1,503 UK adults with savings of between £1,000 - £100,000, and those with over £100,000 ($129,000) in savings or investable assets. 

High net worth millennial investors are even more ethically minded – two in five (41 per cent) would take their investment out of a company if it faced allegations of misconduct or unethical behaviour, even if it was achieving high returns. 

Almost a third (29 per cent) of millennials said they ensure that funds are ethical before investing compared with just 7 per cent of those aged 55-64. Some 8 per cent of 18-24 year olds say they place a higher importance on a company’s ethics than the potential returns it could generate (compared with 2 per cent of older investors aged 65+).  

“There is a growing concern among investors about the need to ensure that investments are socially responsible and these figures suggest that millennials, and especially HNW millennials, are leading the way,” said John David, head of Rathbone Greenbank Investments, a subsidiary of Rathbone Investment Management. “As millennials come of age and begin to think seriously about investments, it is clear that this generation is taking a different approach towards saving – one that looks at social and environmental impact as well as financial return. While this is happening, ethical investing has at the same time become easier than ever, with an increased number of investment options available and [with] better performance. These developments will be welcomed by many. Interest in ethical investment has been on the rise for many years but seems to be achieving unprecedented prominence at the moment. It is a trend that is not going to go away – and it affects not just the fund management industry but all of UK business.”

Ethical investing is now worth over £16 billion in the UK. According to the London Stock Exchange, 10 environmentally or socially responsible exchange-traded funds have been listed in London so far this year, compared with just six in 2017.