American workers are placing a high priority on “making the world a better place’’ while growing their retirement portfolios, according to a survey by Natixis Investment Managers.
A majority of investors said they want access to environmental, social and governance (ESG) funds in their defined contribution plans, but the report noted that not many plans are on board with the idea.
Among plan participants not currently invested in ESG funds, only 13 percent said their company’s retirement plan offers ESG options.
The report said 75 percent of respondents believe it is important to make the world a better place while growing their personal assets. But they also see strong growth opportunities in ESG investments. Meanwhile, 74 percent of respondents said companies that provide clean water and clean energy present significant growth opportunities.
Sixty-one percent of respondents said they would be more likely to contribute or increase contributions to their workplace retirement savings plan if there were more socially responsible investments.
Millennials especially were vocal in this area, the report said, noting that two-thirds said access to ESG investments would motivate them to start saving or increase their plan savings. Twenty-seven percent of millennials also said they are watching the ESG record of companies they invest in.
“Given that 62 percent of workers overall say they are concerned about the ESG records of the companies they invest in, failing to offer these investments could amount to a significant oversight for plan sponsors who are concerned with both participation and contribution rates,‘’ the report said.
The 2019 Defined Contribution Plan Participant survey, which included 1,000 U.S. workers, of which 700 were plan participants, polled 503 millennials, 249 Gen Xers and 248 baby boomers.