The power of collective action in sustainable investing

Investors have a responsibility to ensure their money is being used for good, instead of funding harmful practices such as fossil fuels, according to a recent survey of UK consumers by Triodos Bank.

Respondents to the survey also said they felt people needed to collectively invest in long-term solutions to the issues the world is facing, such as investing in renewable energy to bring down energy costs and reliance on fossil fuels.

Amid the demand for more sustainable investment strategies, the cost of living crisis is also having an impact on people’s desire to invest.

Rising energy bills and living costs have also accelerated people’s dissatisfaction with the status quo of the financial system, leading them to demand positive long-term change, the study found.

However, there is a worry that the cost of living increases have had an impact on people being able to use their money for positive change.

Despite this, almost two-thirds of people (64 per cent) say those that can afford to invest should choose sustainable investments that help bring about positive change for everyone. 

The report added: “Nearly three quarters of the UK public (73 per cent) believe we need to collectively invest in long-term solutions to the issues the world is facing – such as investing in renewable energy to bring down energy costs and reduce our reliance on fossil fuels. 

“This demand is being driven by three quarters of people (75 per cent) saying they are frustrated that big banks continue to make huge profits despite cost of living increases. For those over the age of 55, this rises to 81 per cent – implying that the older generations may be even more concerned. 

“In light of rising household costs, over half of people (54 per cent) want banks to do more to invest in long-term sustainable change, while 53 per cent say being more careful with their money makes them think more critically about how it is being used by their bank.  

Power of collective individual action 

Misconceptions about not being able to save enough to make a positive impact may also be holding many people back from making ethical and sustainable choices with their money, the study found.

Six in 10 people (61 per cent) believe that they do not have enough savings or investments for their impact to make a difference, while more than half (56 per cent) think you have to be rich to be able to make a positive impact with money. 

Roger Hattam, director of retail banking at Triodos Bank UK, said: "The prevalent myth that you have to be very wealthy to make a difference with your money couldn't be further from the truth.