Millennials are not the only age group interested in making an impact with their investible assets, according to a new survey.
Majorities of surveyed millennials, Generation Xers and baby boomers told Allianz Life that they considered environmental, social and governance (ESG) issues when choosing which companies to do business with. But Allianz noted that both advisors and investors have yet to fully embrace ESG investing.
Yet Allianz also found evidence that investors aren’t yet putting their money where their mouth is when it comes to ESG investing. Only 17% of the millennial respondents reported participating in ESG investing, followed by Gen X (7%) and boomers (3%).
While millennials, ages 19 to 35, were the most likely to consider ESG factors, at 77%, other generations were close behind. Sixty-four percent of Gen Xers, ages 36 to 55, and 61% of boomers, ages 56 to 73, felt the same way.
Advisors have yet to meet the demand for more ESG information and investment choices, respondents said. Only 30% said they have discussed ESG with their advisor, and of these, 69% said that they had to initiate the conversation.
About three-quarters of those who work with a financial professional said that they have a positive perception of ESG investing, and more than half of those not engaged in ESG investing said they were interested in it.
Sixty-one percent of boomer respondents said that they wanted to engage in ESG investing to encourage companies to be good corporate citizens, compared with 51% of millennials and 48% of Gen Xers.
Allianz Life conducted its study online among 1,000 U.S. households in December.