Over half of people surveyed say they are unaware of or do not understand the terms ‘responsible investment,’ ‘sustainable investment,’ or ‘ESG investing,’ according to research from Aegon.
Aegon surveyed 10,000 people and research revealed a knowledge gap in awareness and understanding of ESG principles and how they apply to savings and investments.
The research found that while 13 per cent say most of their investments have a sustainable mandate, half of those polled were unsure how much exposure they had to these types of funds.
Figures also show that nearly three-quarters of people are concerned about environmental issues, but only about one-tenth invest in funds that include sustainability criteria.
Aegon head of responsible investment Hilkka Komulainen says: “Our research shows the disparity that exists between people’s concern about environmental, social and governance issues, and their understanding of the role that pension saving has to play in supporting a more sustainable world. COP26 did a good job of raising awareness of sustainability issues but we need to educate and bring attitudes towards responsible pension saving in line with people’s behaviour in other areas.
“As pension scheme default funds increasingly integrate ESG criteria into mainstream investing, we want to help pension scheme members understand the relationship between their savings and the world they live in, encouraging a more meaningful connection between people’s pensions and where they are invested. At Aegon, we are focused on how we can support pension savers both through education and our wider responsible investment initiatives, including our commitment to net-zero carbon emissions for default funds by 2050 and to halving emissions by 2030. As part of that, we’ve already moved over £11.5 billion of default savings into strategies that consider ESG factors.”